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Sunoco LP Common Units (SUN) — WACC Analysis

WACC Breakdown

Sunoco LP Common Units (SUN) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 7.8%, derived from a beta of 0.40 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.2%. The capital structure is 51.7% equity and 48.3% debt.

Interpretation

A WACC of 6.0% suggests that the market views Sunoco LP Common Units as relatively low-risk, with a lower cost of financing.

Investors can compare SUN's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 0.40 reflects the stock's volatility relative to the broader market.

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VALUATION

SUN WACC: 6.02% for Sunoco LP Common Units

Current inputs imply a 7.76% cost of equity and a 5.27% 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

Sunoco LP Common Units Common Stock (SUN) WACC Results
Weighted Average Cost of Capital
6.02%
Cost of Equity
7.76%
Risk-Free Rate5.22%
Beta0.40
Market Risk Premium4.23%
Cost of Debt
4.17%
Pre-Tax Cost of Debt5.27%
Tax Rate21.00%
Tax Shield1.11%
Capital Structure
Equity: 51.66%($14.23B)
Debt: 48.34%($13.31B)
Equity Component
4.01%
51.66% × 7.76%
Debt Component
2.01%
48.34% × 4.17%

Sunoco LP Common Units (SUN) WACC in context

Sunoco LP Common Units (SUN) currently screens with an estimated WACC of 6.02%. That blends a 7.76% cost of equity, a 5.27% pre-tax cost of debt, and a 51.66% 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 SUN WACC implies

A 6.02% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SUN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.40 and equity accounts for 51.66% 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.

SUN WACC: 6.02% — Sunoco LP Common Units Cost of Capital (October 2026) | DeepViews