Stock Analysis on Net

HCA Healthcare Inc. (NYSE:HCA)

This company has been moved to the archive! The financial data has not been updated since May 3, 2022.

Capital Asset Pricing Model (CAPM) 

Microsoft Excel

Rates of Return

HCA Healthcare Inc., monthly rates of return

Microsoft Excel
HCA Healthcare Inc. (HCA) Standard & Poor’s 500 (S&P 500)
t Date PriceHCA,t1 DividendHCA,t1 RHCA,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2017 $80.28 2,278.87
1. Feb 28, 2017 $87.24 8.67% 2,363.64 3.72%
2. Mar 31, 2017 $88.99 2.01% 2,362.72 -0.04%
3. Apr 30, 2017 $84.21 -5.37% 2,384.20 0.91%
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2021 $225.59 -9.93% 4,567.00 -0.83%
59. Dec 31, 2021 $256.92 $0.48 14.10% 4,766.18 4.36%
Average (R): 2.54% 1.36%
Standard deviation: 10.04% 4.48%
HCA Healthcare Inc. (HCA) Standard & Poor’s 500 (S&P 500)
t Date PriceHCA,t1 DividendHCA,t1 RHCA,t2 PriceS&P 500,t RS&P 500,t3
Jan 31, 2017 $80.28 2,278.87
1. Feb 28, 2017 $87.24 8.67% 2,363.64 3.72%
2. Mar 31, 2017 $88.99 2.01% 2,362.72 -0.04%
3. Apr 30, 2017 $84.21 -5.37% 2,384.20 0.91%
4. May 31, 2017 $81.91 -2.73% 2,411.80 1.16%
5. Jun 30, 2017 $87.20 6.46% 2,423.41 0.48%
6. Jul 31, 2017 $80.34 -7.87% 2,470.30 1.93%
7. Aug 31, 2017 $78.66 -2.09% 2,471.65 0.05%
8. Sep 30, 2017 $79.59 1.18% 2,519.36 1.93%
9. Oct 31, 2017 $75.65 -4.95% 2,575.26 2.22%
10. Nov 30, 2017 $85.00 12.36% 2,647.58 2.81%
11. Dec 31, 2017 $87.84 3.34% 2,673.61 0.98%
12. Jan 31, 2018 $101.16 15.16% 2,823.81 5.62%
13. Feb 28, 2018 $99.25 $0.35 -1.54% 2,713.83 -3.89%
14. Mar 31, 2018 $97.00 -2.27% 2,640.87 -2.69%
15. Apr 30, 2018 $95.74 -1.30% 2,648.05 0.27%
16. May 31, 2018 $103.14 $0.35 8.09% 2,705.27 2.16%
17. Jun 30, 2018 $102.60 -0.52% 2,718.37 0.48%
18. Jul 31, 2018 $124.23 21.08% 2,816.29 3.60%
19. Aug 31, 2018 $134.11 $0.35 8.23% 2,901.52 3.03%
20. Sep 30, 2018 $139.12 3.74% 2,913.98 0.43%
21. Oct 31, 2018 $133.53 -4.02% 2,711.74 -6.94%
22. Nov 30, 2018 $143.99 $0.35 8.10% 2,760.17 1.79%
23. Dec 31, 2018 $124.45 -13.57% 2,506.85 -9.18%
24. Jan 31, 2019 $139.43 12.04% 2,704.10 7.87%
25. Feb 28, 2019 $139.04 $0.40 0.01% 2,784.49 2.97%
26. Mar 31, 2019 $130.38 -6.23% 2,834.40 1.79%
27. Apr 30, 2019 $127.23 -2.42% 2,945.83 3.93%
28. May 31, 2019 $120.96 $0.40 -4.61% 2,752.06 -6.58%
29. Jun 30, 2019 $135.17 11.75% 2,941.76 6.89%
30. Jul 31, 2019 $133.51 -1.23% 2,980.38 1.31%
31. Aug 31, 2019 $120.20 $0.40 -9.67% 2,926.46 -1.81%
32. Sep 30, 2019 $120.42 0.18% 2,976.74 1.72%
33. Oct 31, 2019 $133.54 10.90% 3,037.56 2.04%
34. Nov 30, 2019 $138.66 $0.40 4.13% 3,140.98 3.40%
35. Dec 31, 2019 $147.81 6.60% 3,230.78 2.86%
36. Jan 31, 2020 $138.80 -6.10% 3,225.52 -0.16%
37. Feb 29, 2020 $127.01 $0.43 -8.18% 2,954.22 -8.41%
38. Mar 31, 2020 $89.85 -29.26% 2,584.59 -12.51%
39. Apr 30, 2020 $109.88 22.29% 2,912.43 12.68%
40. May 31, 2020 $106.90 -2.71% 3,044.31 4.53%
41. Jun 30, 2020 $97.06 -9.20% 3,100.29 1.84%
42. Jul 31, 2020 $126.64 30.48% 3,271.12 5.51%
43. Aug 31, 2020 $135.72 7.17% 3,500.31 7.01%
44. Sep 30, 2020 $124.68 -8.13% 3,363.00 -3.92%
45. Oct 31, 2020 $123.94 -0.59% 3,269.96 -2.77%
46. Nov 30, 2020 $150.11 21.12% 3,621.63 10.75%
47. Dec 31, 2020 $164.46 9.56% 3,756.07 3.71%
48. Jan 31, 2021 $162.48 -1.20% 3,714.24 -1.11%
49. Feb 28, 2021 $172.03 5.88% 3,811.15 2.61%
50. Mar 31, 2021 $188.34 $0.48 9.76% 3,972.89 4.24%
51. Apr 30, 2021 $201.06 6.75% 4,181.17 5.24%
52. May 31, 2021 $214.79 6.83% 4,204.11 0.55%
53. Jun 30, 2021 $206.74 $0.48 -3.52% 4,297.50 2.22%
54. Jul 31, 2021 $248.20 20.05% 4,395.26 2.27%
55. Aug 31, 2021 $252.98 1.93% 4,522.68 2.90%
56. Sep 30, 2021 $242.72 $0.48 -3.87% 4,307.54 -4.76%
57. Oct 31, 2021 $250.46 3.19% 4,605.38 6.91%
58. Nov 30, 2021 $225.59 -9.93% 4,567.00 -0.83%
59. Dec 31, 2021 $256.92 $0.48 14.10% 4,766.18 4.36%
Average (R): 2.54% 1.36%
Standard deviation: 10.04% 4.48%

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1 Data in US$ per share of common stock, adjusted for splits and stock dividends.

2 Rate of return on common stock of HCA during period t

3 Rate of return on S&P 500 (the market portfolio proxy) during period t


Variance and Covariance

HCA Healthcare Inc., calculation of variance and covariance of returns

Microsoft Excel
t Date RHCA,t RS&P 500,t (RHCA,tRHCA)2 (RS&P 500,tRS&P 500)2 (RHCA,tRHCA)×(RS&P 500,tRS&P 500)
1. Feb 28, 2017 8.67% 3.72% 37.54 5.58 14.47
2. Mar 31, 2017 2.01% -0.04% 0.29 1.95 0.75
3. Apr 30, 2017 -5.37% 0.91% 62.64 0.20 3.55
. . . . . . .
. . . . . . .
. . . . . . .
58. Nov 30, 2021 -9.93% -0.83% 155.57 4.80 27.33
59. Dec 31, 2021 14.10% 4.36% 133.58 9.02 34.71
Total (Σ): 5,849.44 1,164.17 1,932.36
t Date RHCA,t RS&P 500,t (RHCA,tRHCA)2 (RS&P 500,tRS&P 500)2 (RHCA,tRHCA)×(RS&P 500,tRS&P 500)
1. Feb 28, 2017 8.67% 3.72% 37.54 5.58 14.47
2. Mar 31, 2017 2.01% -0.04% 0.29 1.95 0.75
3. Apr 30, 2017 -5.37% 0.91% 62.64 0.20 3.55
4. May 31, 2017 -2.73% 1.16% 27.82 0.04 1.06
5. Jun 30, 2017 6.46% 0.48% 15.33 0.77 -3.43
6. Jul 31, 2017 -7.87% 1.93% 108.37 0.33 -6.01
7. Aug 31, 2017 -2.09% 0.05% 21.47 1.70 6.04
8. Sep 30, 2017 1.18% 1.93% 1.85 0.33 -0.78
9. Oct 31, 2017 -4.95% 2.22% 56.15 0.74 -6.45
10. Nov 30, 2017 12.36% 2.81% 96.37 2.10 14.24
11. Dec 31, 2017 3.34% 0.98% 0.64 0.14 -0.30
12. Jan 31, 2018 15.16% 5.62% 159.29 18.15 53.76
13. Feb 28, 2018 -1.54% -3.89% 16.69 27.59 21.46
14. Mar 31, 2018 -2.27% -2.69% 23.14 16.37 19.46
15. Apr 30, 2018 -1.30% 0.27% 14.76 1.18 4.17
16. May 31, 2018 8.09% 2.16% 30.82 0.64 4.46
17. Jun 30, 2018 -0.52% 0.48% 9.40 0.76 2.68
18. Jul 31, 2018 21.08% 3.60% 343.69 5.04 41.61
19. Aug 31, 2018 8.23% 3.03% 32.40 2.78 9.50
20. Sep 30, 2018 3.74% 0.43% 1.42 0.86 -1.11
21. Oct 31, 2018 -4.02% -6.94% 43.05 68.86 54.45
22. Nov 30, 2018 8.10% 1.79% 30.83 0.18 2.38
23. Dec 31, 2018 -13.57% -9.18% 259.64 111.00 169.76
24. Jan 31, 2019 12.04% 7.87% 90.14 42.39 61.81
25. Feb 28, 2019 0.01% 2.97% 6.43 2.61 -4.10
26. Mar 31, 2019 -6.23% 1.79% 76.94 0.19 -3.81
27. Apr 30, 2019 -2.42% 3.93% 24.59 6.62 -12.76
28. May 31, 2019 -4.61% -6.58% 51.22 62.97 56.79
29. Jun 30, 2019 11.75% 6.89% 84.73 30.64 50.95
30. Jul 31, 2019 -1.23% 1.31% 14.22 0.00 0.17
31. Aug 31, 2019 -9.67% -1.81% 149.15 10.03 38.68
32. Sep 30, 2019 0.18% 1.72% 5.57 0.13 -0.85
33. Oct 31, 2019 10.90% 2.04% 69.76 0.47 5.72
34. Nov 30, 2019 4.13% 3.40% 2.53 4.19 3.26
35. Dec 31, 2019 6.60% 2.86% 16.45 2.25 6.09
36. Jan 31, 2020 -6.10% -0.16% 74.63 2.31 13.14
37. Feb 29, 2020 -8.18% -8.41% 115.08 95.43 104.80
38. Mar 31, 2020 -29.26% -12.51% 1,011.27 192.37 441.07
39. Apr 30, 2020 22.29% 12.68% 390.05 128.29 223.70
40. May 31, 2020 -2.71% 4.53% 27.62 10.05 -16.66
41. Jun 30, 2020 -9.20% 1.84% 138.01 0.23 -5.65
42. Jul 31, 2020 30.48% 5.51% 780.25 17.24 115.98
43. Aug 31, 2020 7.17% 7.01% 21.41 31.91 26.14
44. Sep 30, 2020 -8.13% -3.92% 114.01 27.89 56.38
45. Oct 31, 2020 -0.59% -2.77% 9.84 17.01 12.94
46. Nov 30, 2020 21.12% 10.75% 344.92 88.30 174.52
47. Dec 31, 2020 9.56% 3.71% 49.23 5.54 16.52
48. Jan 31, 2021 -1.20% -1.11% 14.04 6.11 9.26
49. Feb 28, 2021 5.88% 2.61% 11.12 1.57 4.17
50. Mar 31, 2021 9.76% 4.24% 52.08 8.33 20.83
51. Apr 30, 2021 6.75% 5.24% 17.73 15.09 16.36
52. May 31, 2021 6.83% 0.55% 18.37 0.65 -3.47
53. Jun 30, 2021 -3.52% 2.22% 36.81 0.75 -5.24
54. Jul 31, 2021 20.05% 2.27% 306.64 0.84 16.06
55. Aug 31, 2021 1.93% 2.90% 0.38 2.38 -0.95
56. Sep 30, 2021 -3.87% -4.76% 41.07 37.39 39.19
57. Oct 31, 2021 3.19% 6.91% 0.42 30.87 3.59
58. Nov 30, 2021 -9.93% -0.83% 155.57 4.80 27.33
59. Dec 31, 2021 14.10% 4.36% 133.58 9.02 34.71
Total (Σ): 5,849.44 1,164.17 1,932.36

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VarianceHCA = Σ(RHCA,tRHCA)2 ÷ (59 – 1)
= 5,849.44 ÷ (59 – 1)
= 100.85

VarianceS&P 500 = Σ(RS&P 500,tRS&P 500)2 ÷ (59 – 1)
= 1,164.17 ÷ (59 – 1)
= 20.07

CovarianceHCA, S&P 500 = Σ(RHCA,tRHCA)×(RS&P 500,tRS&P 500) ÷ (59 – 1)
= 1,932.36 ÷ (59 – 1)
= 33.32


Systematic Risk (β) Estimation

Microsoft Excel
VarianceHCA 100.85
VarianceS&P 500 20.07
CovarianceHCA, S&P 500 33.32
Correlation coefficientHCA, S&P 5001 0.74
βHCA2 1.66
αHCA3 0.29%

Calculations

1 Correlation coefficientHCA, S&P 500
= CovarianceHCA, S&P 500 ÷ (Standard deviationHCA × Standard deviationS&P 500)
= 33.32 ÷ (10.04% × 4.48%)
= 0.74

2 βHCA
= CovarianceHCA, S&P 500 ÷ VarianceS&P 500
= 33.32 ÷ 20.07
= 1.66

3 αHCA
= AverageHCA – βHCA × AverageS&P 500
= 2.54%1.66 × 1.36%
= 0.29%


Expected Rate of Return

Microsoft Excel
Assumptions
Rate of return on LT Treasury Composite1 RF 4.67%
Expected rate of return on market portfolio2 E(RM) 13.79%
Systematic risk (β) of HCA Healthcare Inc. common stock βHCA 1.66
 
Expected rate of return on HCA Healthcare Inc. common stock3 E(RHCA) 19.80%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 E(RHCA) = RF + βHCA [E(RM) – RF]
= 4.67% + 1.66 [13.79%4.67%]
= 19.80%