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Somnigroup International Inc. (SGI) — WACC Analysis

WACC Breakdown

Somnigroup International Inc. (SGI) has a weighted average cost of capital (WACC) of 8.7%. The cost of equity is 10.0%, derived from a beta of 1.19 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.5%. The capital structure is 76.5% equity and 23.5% debt.

Interpretation

A WACC of 8.7% is moderate, reflecting the market's balanced risk assessment of Somnigroup International Inc..

Investors can compare SGI's WACC of 8.7% against industry peers to gauge its relative financing costs. A beta of 1.19 reflects the stock's volatility relative to the broader market.

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VALUATION

SGI WACC: 8.71% for Somnigroup International Inc.

Current inputs imply a 9.99% cost of equity and a 5.74% 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

Somnigroup International Inc. Common Stock (SGI) WACC Results
Weighted Average Cost of Capital
8.71%
Cost of Equity
9.99%
Risk-Free Rate5.22%
Beta1.19
Market Risk Premium4.23%
Cost of Debt
4.54%
Pre-Tax Cost of Debt5.74%
Tax Rate21.00%
Tax Shield1.21%
Capital Structure
Equity: 76.52%($14.37B)
Debt: 23.48%($4408.50M)
Equity Component
7.64%
76.52% × 9.99%
Debt Component
1.06%
23.48% × 4.54%

Somnigroup International Inc. (SGI) WACC in context

Somnigroup International Inc. (SGI) currently screens with an estimated WACC of 8.71%. That blends a 9.99% cost of equity, a 5.74% pre-tax cost of debt, and a 76.52% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What SGI WACC implies

A 8.71% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SGI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.19 and equity accounts for 76.52% 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.