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SunCar Technology Group Inc. Class A Ordinary Shares (SDA) — WACC Analysis

WACC Breakdown

SunCar Technology Group Inc. Class A Ordinary Shares (SDA) has a weighted average cost of capital (WACC) of 5.9%. The cost of equity is 7.5%, derived from a beta of 0.51 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.4%. The capital structure is 47.1% equity and 52.9% debt.

Interpretation

A WACC of 5.9% suggests that the market views SunCar Technology Group Inc. Class A Ordinary Shares as relatively low-risk, with a lower cost of financing.

Investors can compare SDA's WACC of 5.9% against industry peers to gauge its relative financing costs. A beta of 0.51 reflects the stock's volatility relative to the broader market.

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VALUATION

SDA WACC: 5.86% for SunCar Technology Group Inc. Class A Ordinary Shares

Current inputs imply a 7.52% cost of equity and a 4.39% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

SunCar Technology Group Inc. Class A Ordinary Shares Common Stock (SDA) WACC Results
Weighted Average Cost of Capital
5.86%
Cost of Equity
7.52%
Risk-Free Rate4.67%
Beta0.51
Market Risk Premium4.23%
Cost of Debt
4.39%
Pre-Tax Cost of Debt4.39%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 47.11%($74.47M)
Debt: 52.89%($83.60M)
Equity Component
3.54%
47.11% × 7.52%
Debt Component
2.32%
52.89% × 4.39%

SunCar Technology Group Inc. Class A Ordinary Shares (SDA) WACC in context

SunCar Technology Group Inc. Class A Ordinary Shares (SDA) currently screens with an estimated WACC of 5.86%. That blends a 7.52% cost of equity, a 4.39% pre-tax cost of debt, and a 47.11% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What SDA WACC implies

A 5.86% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SDA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.51 and equity accounts for 47.11% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.