SAH
Sonic Automotive Inc
Price:  
58.30 
USD
Volume:  
158,970.00
United States | Specialty Retail
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Sonic WACC - Weighted Average Cost of Capital

The WACC of Sonic Automotive Inc (SAH) is 7.0%.

The Cost of Equity of Sonic Automotive Inc (SAH) is 12.60%.
The Cost of Debt of Sonic Automotive Inc (SAH) is 5.85%.

Range Selected
Cost of equity 11.00% - 14.20% 12.60%
Tax rate 27.00% - 34.80% 30.90%
Cost of debt 4.00% - 7.70% 5.85%
WACC 5.7% - 8.2% 7.0%
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 1.54 1.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.20%
Tax rate 27.00% 34.80%
Debt/Equity ratio 1.87 1.87
Cost of debt 4.00% 7.70%
After-tax WACC 5.7% 8.2%
Selected WACC 7.0%