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SFL Corporation Ltd. (SFL) — WACC Analysis

WACC Breakdown

SFL Corporation Ltd. (SFL) has a weighted average cost of capital (WACC) of 7.3%. The cost of equity is 7.7%, derived from a beta of 0.59 and a risk-free rate of 4.7%. The after-tax cost of debt is 7.0%. The capital structure is 40.0% equity and 60.0% debt.

Interpretation

A WACC of 7.3% suggests that the market views SFL Corporation Ltd. as relatively low-risk, with a lower cost of financing.

Investors can compare SFL's WACC of 7.3% against industry peers to gauge its relative financing costs. A beta of 0.59 reflects the stock's volatility relative to the broader market.

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VALUATION

SFL WACC: 7.32% for SFL Corporation Ltd.

Current inputs imply a 7.74% cost of equity and a 7.03% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

SFL Corporation Ltd. Common Stock (SFL) WACC Results
Weighted Average Cost of Capital
7.32%
Cost of Equity
7.74%
Risk-Free Rate4.67%
Beta0.59
Market Risk Premium4.23%
Cost of Debt
7.03%
Pre-Tax Cost of Debt7.03%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 40.02%($1712.58M)
Debt: 59.98%($2566.48M)
Equity Component
3.10%
40.02% × 7.74%
Debt Component
4.22%
59.98% × 7.03%

SFL Corporation Ltd. (SFL) WACC in context

SFL Corporation Ltd. (SFL) currently screens with an estimated WACC of 7.32%. That blends a 7.74% cost of equity, a 7.03% pre-tax cost of debt, and a 40.02% 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 SFL WACC implies

A 7.32% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SFL

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.59 and equity accounts for 40.02% 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.