SAH
Sonic Automotive Inc
Price:  
56.65 
USD
Volume:  
151,246.00
United States | Specialty Retail
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Sonic WACC - Weighted Average Cost of Capital

The WACC of Sonic Automotive Inc (SAH) is 6.7%.

The Cost of Equity of Sonic Automotive Inc (SAH) is 11.70%.
The Cost of Debt of Sonic Automotive Inc (SAH) is 5.85%.

Range Selected
Cost of equity 10.10% - 13.30% 11.70%
Tax rate 27.00% - 34.80% 30.90%
Cost of debt 4.00% - 7.70% 5.85%
WACC 5.5% - 8.0% 6.7%
WACC

Sonic WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.36 1.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 13.30%
Tax rate 27.00% 34.80%
Debt/Equity ratio 1.81 1.81
Cost of debt 4.00% 7.70%
After-tax WACC 5.5% 8.0%
Selected WACC 6.7%