TDOC
Teladoc Health Inc
Price:  
7.06 
USD
Volume:  
6,364,603.00
United States | Health Care Technology
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TDOC WACC - Weighted Average Cost of Capital

The WACC of Teladoc Health Inc (TDOC) is 6.3%.

The Cost of Equity of Teladoc Health Inc (TDOC) is 7.45%.
The Cost of Debt of Teladoc Health Inc (TDOC) is 5.50%.

Range Selected
Cost of equity 6.10% - 8.80% 7.45%
Tax rate 0.60% - 5.00% 2.80%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.9% - 7.6% 6.3%
WACC

TDOC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.48 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 8.80%
Tax rate 0.60% 5.00%
Debt/Equity ratio 1.25 1.25
Cost of debt 4.00% 7.00%
After-tax WACC 4.9% 7.6%
Selected WACC 6.3%

TDOC'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 TDOC:

cost_of_equity (7.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.