Estimating cost of capital when valuing healthcare entities can be challenging due to (among other factors) the regulatory environment, the impact of changes in reimbursement, the size of the entities, the lack of guideline public companies, and other entity-specific risks. Kate Morris and Matt Warren will establish a logical framework for developing cost of capital in such entities within the context of the spectrum of market returns and the observed rates of return in capital markets. Get a holistic view of how market rates of return and the returns on healthcare companies, the regulatory environment impact on risk and company-specific facts and circumstances to consider all impact cost of capital. The discussion will touch on considerations regarding estimating the cost of debt for the subject company and estimating the optimal capital structure. Case studies will illuminate factors that can impact risk in healthcare valuations and conclude with items to consider when assessing the reasonableness of the analyst’s concluded cost of capital.