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