ONEM
1Life Healthcare Inc
Price:  
16.47 
USD
Volume:  
12,608,400.00
United States | Health Care Providers & Services
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ONEM WACC - Weighted Average Cost of Capital

The WACC of 1Life Healthcare Inc (ONEM) is 9.0%.

The Cost of Equity of 1Life Healthcare Inc (ONEM) is 7.55%.
The Cost of Debt of 1Life Healthcare Inc (ONEM) is 25.35%.

Range Selected
Cost of equity 6.20% - 8.90% 7.55%
Tax rate 0.20% - 0.20% 0.20%
Cost of debt 7.00% - 43.70% 25.35%
WACC 6.2% - 11.8% 9.0%
WACC

ONEM WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.5 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.90%
Tax rate 0.20% 0.20%
Debt/Equity ratio 0.09 0.09
Cost of debt 7.00% 43.70%
After-tax WACC 6.2% 11.8%
Selected WACC 9.0%

ONEM'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 ONEM:

cost_of_equity (7.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.5) + 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.