SGRY
Surgery Partners Inc
Price:  
23.08 
USD
Volume:  
554,747.00
United States | Health Care Providers & Services
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SGRY WACC - Weighted Average Cost of Capital

The WACC of Surgery Partners Inc (SGRY) is 7.2%.

The Cost of Equity of Surgery Partners Inc (SGRY) is 10.30%.
The Cost of Debt of Surgery Partners Inc (SGRY) is 7.25%.

Range Selected
Cost of equity 9.00% - 11.60% 10.30%
Tax rate 17.80% - 49.30% 33.55%
Cost of debt 7.00% - 7.50% 7.25%
WACC 7.2% - 7.3% 7.2%
WACC

SGRY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.11 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.00% 11.60%
Tax rate 17.80% 49.30%
Debt/Equity ratio 1.23 1.23
Cost of debt 7.00% 7.50%
After-tax WACC 7.2% 7.3%
Selected WACC 7.2%

SGRY'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 SGRY:

cost_of_equity (10.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.11) + 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.