GDRX
Goodrx Holdings Inc
Price:  
4.71 
USD
Volume:  
2,817,927
United States | Health Care Technology

GDRX WACC - Weighted Average Cost of Capital

The WACC of Goodrx Holdings Inc (GDRX) is 7.4%.

The Cost of Equity of Goodrx Holdings Inc (GDRX) is 7.95%.
The Cost of Debt of Goodrx Holdings Inc (GDRX) is 7.5%.

RangeSelected
Cost of equity6.9% - 9.0%7.95%
Tax rate26.2% - 27.0%26.6%
Cost of debt5.9% - 9.1%7.5%
WACC6.3% - 8.5%7.4%
WACC

GDRX WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.660.74
Additional risk adjustments0.0%0.5%
Cost of equity6.9%9.0%
Tax rate26.2%27.0%
Debt/Equity ratio
0.280.28
Cost of debt5.9%9.1%
After-tax WACC6.3%8.5%
Selected WACC7.4%

GDRX WACC - Detailed calculations of Beta

LowHigh
Unlevered beta0.410.5
Relevered beta0.490.61
Adjusted relevered beta0.660.74

GDRX's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for GDRX:

cost_of_equity (7.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.66) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.