Get the tools used by (smart)2 investors.

WACC

Join now and get access to the full platform

Search for company or ETF

 

  0 results available. Select is focused ,type to refine list, press Down to open the menu,

-
Price
Fair Value
Upside
- - -
52-week range

Analysis

How does Merck & Co Inc's WACC benchmark against competitors?

Hide this widget

We've identified the following companies as similar to Merck & Co Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: WACC

Hide this widget
wacc
Slug
number
Datatype
%.%
Format
current
Default Period
Premium
Plan

Data is returned as a standard number. Suggested format is percent (e.g 0.171 => 17.1%). Please note, you need a Premium subscription to access data for wacc.

To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

Hide this widget

Metrics similar to WACC in the valuation category include:

  • EV / EBIT Growth Ratio - A heuristic used to measure the level of EBIT growth relative to the EV / EBIT multiple.
  • EV / EBIT - Measures the dollars in Enterprise Value for each dollar of EBIT over the last twelve months.
  • EV / Free Cash Flow - Measures the dollars in Enterprise Value for each dollar of free cash flow over the last twelve months.
  • Volume, Pre Market - The volume of pre-market trades of an instrument or asset
View Full List

Search for metric or datapoint

WACC

Our estimate of the weighted average cost of capital for a company.

Definition of WACC

Hide this widget

The Weighted Average Cost of Capital or WACC is a discount rate used to find the present value a company’s future cash flows that is applied in various Discounted Cash Flow (DCF) analyses. Broadly speaking, a company’s assets are financed by either debt or equity. The WACC is the average of these sources of financing, each of which is weighted by its respective use.

WACC can also be described as the weighted average rate of return a firm theoretically pays to its debt and equity providers to compensate for the risk they undertake by investing their capital.

We estimate WACC using the Capital Asset Pricing Model (CAPM).

How to calculate the WACC:

  Total Capital = Debt + Equity

  WACC =
      (Equity / Total Capital) * Cost of Equity
    + (Debt / Total Capital) * Cost of Debt * (1 - Tax Rate)

Sector Benchmark Analysis

Sector
Industry Group
Industry
Hide this widget
8.0%12.0%16.0%22.5%0100200300

The chart above depicts the distribution of wacc for companies operating in the Healthcare sector in the Developed economic region. Over 2,525 companies were considered in this analysis, and 2,456 had meaningful values. The average wacc of companies in the sector is 10.7% with a standard deviation of 2.5%.

Merck & Co Inc's WACC of 7.5% is significantly outside the interquartile range and is excluded from the distribution. The following table provides additional summary stats:

WACC In The Healthcare Sector
Economic Risk RegionDeveloped
Total Constituents2,530
Included Constituents2,456
Min7.8%
Max22.5%
Median10.0%
Mean10.7%
Standard Deviation2.5%

You can find companies with similar wacc using this stock screener.

All rights reserved. Terms Of Use