Abstract
This paper makes an in-depth study of the US healthcare industry from both empirical and theoretical aspects of capital structure and investment value. By calculating the WACC (weighted average cost of capital) for three of the most representative public companies in the US healthcare industry (Johnson & Johnson, Pfizer, and UnitedHealth Group) and reviewing the literature, it is concluded that the company's business and capital flows have been affected due to the impact of the COVID-19 pandemic. At the same time, due to some differences in the main business and nature of the three companies, United Health Group found that it has the highest investment risk. Based on the analysis of the investment value and investment risk of Johnson & Johnson, Pfizer, and UnitedHealth Group, this paper provides more appropriate investment recommendations for investors with different preferences, to further understand the future development trend of the American medical industry.
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