S
SentinelOne Inc
Price:  
20.08 
USD
Volume:  
4,978,412.00
United States | Software
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S WACC - Weighted Average Cost of Capital

The WACC of SentinelOne Inc (S) is 11.2%.

The Cost of Equity of SentinelOne Inc (S) is 15.55%.
The Cost of Debt of SentinelOne Inc (S) is 7.00%.

Range Selected
Cost of equity 13.50% - 17.60% 15.55%
Tax rate 1.00% - 1.60% 1.30%
Cost of debt 7.00% - 7.00% 7.00%
WACC 10.2% - 12.3% 11.2%
WACC

S WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.1 2.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.50% 17.60%
Tax rate 1.00% 1.60%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 10.2% 12.3%
Selected WACC 11.2%

S's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for S:

cost_of_equity (15.55%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.1) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.