SAH
Sonic Automotive Inc
Price:  
57.71 
USD
Volume:  
145,867.00
United States | Specialty Retail
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Sonic WACC - Weighted Average Cost of Capital

The WACC of Sonic Automotive Inc (SAH) is 6.2%.

The Cost of Equity of Sonic Automotive Inc (SAH) is 10.45%.
The Cost of Debt of Sonic Automotive Inc (SAH) is 5.50%.

Range Selected
Cost of equity 8.70% - 12.20% 10.45%
Tax rate 27.00% - 34.80% 30.90%
Cost of debt 4.00% - 7.00% 5.50%
WACC 5.1% - 7.4% 6.2%
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 1.05 1.31
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.70% 12.20%
Tax rate 27.00% 34.80%
Debt/Equity ratio 1.71 1.71
Cost of debt 4.00% 7.00%
After-tax WACC 5.1% 7.4%
Selected WACC 6.2%