Signify Health Inc (SGFY) WACC Analysis

As of May 27, 2025, Signify Health Inc (SGFY) carries a Weighted Average Cost of Capital (WACC) of 7.1%. WACC reflects the blended rate Signify Health Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.2%, the cost of debt is 6.3%, and the effective tax rate is 3.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 0.5 – 0.56
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.05

What It Means for Investors

With a selected WACC of 7.1%, Signify Health Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.