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Aims: To compare the cost‐effectiveness of immediate and 12‐month delayed initiation of dapagliflozin treatment in patients with a history of hospitalization for heart failure (HHF) from the UK, Canadian, German, and Spanish healthcare perspectives. Methods and results: A cost‐utility analysis was conducted using a decision‐analytic Markov model with health states defined by Kansas City Cardiomyopathy Questionnaire scores, type 2 diabetes mellitus status and incidence of heart failure (HF) events. Patient‐level data for patients with prior HHF from the Dapagliflozin And Prevention of Adverse‐outcomes in Heart Failure (DAPA‐HF) trial were used to inform the model inputs on clinical events and utility values. Healthcare costs were sourced from the relevant national reference databases and the published literature. Compared to standard therapy, immediate initiation of dapagliflozin decreased HHF (187 events), urgent HF visits (32 events) and cardiovascular mortality (18 events). Standard therapy was associated with lifetime costs of £13 224 and 4.02 quality‐adjusted life years (QALYs). Twelve‐month delayed initiation of dapagliflozin was associated with total discounted lifetime costs and QALYs of £16 660 and 4.61, respectively, compared to £16 912 and 4.66, respectively, for immediate initiation. Compared to standard therapy, immediate and 12‐month delayed initiation of dapagliflozin yielded an incremental cost‐effectiveness ratio (ICER) of £5779 and £5821, respectively. Compared to 12‐month delayed initiation, immediate initiation of dapagliflozin had an ICER of £5263. Results were similar from the Canadian, German, and Spanish healthcare perspectives. Conclusion: Both immediate and 12‐month delayed initiation of dapagliflozin are cost‐effective. However, immediate initiation provides greater clinical benefits, with almost 10% additional QALYs gain, compared to 12‐month delayed initiation of dapagliflozin and should be considered standard of care. [ABSTRACT FROM AUTHOR]