SAH
Sonic Automotive Inc
Price:  
54.08 
USD
Volume:  
329,735.00
United States | Specialty Retail
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Sonic WACC - Weighted Average Cost of Capital

The WACC of Sonic Automotive Inc (SAH) is 6.1%.

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 8.60% - 12.30% 10.45%
Tax rate 27.00% - 34.80% 30.90%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.9% - 7.3% 6.1%
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 1.03 1.32
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 12.30%
Tax rate 27.00% 34.80%
Debt/Equity ratio 1.84 1.84
Cost of debt 4.00% 7.00%
After-tax WACC 4.9% 7.3%
Selected WACC 6.1%