SAH
Sonic Automotive Inc
Price:  
67.20 
USD
Volume:  
127,070.00
United States | Specialty Retail
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Sonic WACC - Weighted Average Cost of Capital

The WACC of Sonic Automotive Inc (SAH) is 6.5%.

The Cost of Equity of Sonic Automotive Inc (SAH) is 10.65%.
The Cost of Debt of Sonic Automotive Inc (SAH) is 5.75%.

Range Selected
Cost of equity 9.20% - 12.10% 10.65%
Tax rate 27.00% - 34.80% 30.90%
Cost of debt 4.00% - 7.50% 5.75%
WACC 5.4% - 7.7% 6.5%
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 1.16 1.3
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 12.10%
Tax rate 27.00% 34.80%
Debt/Equity ratio 1.56 1.56
Cost of debt 4.00% 7.50%
After-tax WACC 5.4% 7.7%
Selected WACC 6.5%