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As of today (2026-07-15), Societe Nationale des Telecommunications SONATEL's weighted average cost of capital is 9.06%%. Societe Nationale des Telecommunications SONATEL's ROIC % is 17.00% (calculated using TTM income statement data).
Societe Nationale des Telecommunications SONATEL generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Societe Nationale des Telecommunications SONATEL (XBRV:SNTS) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Societe Nationale des Telecommunications SONATEL's weighted average cost of capital is 9.06%%. Societe Nationale des Telecommunications SONATEL's ROIC % is 17.00% (calculated using TTM income statement data).
Societe Nationale des Telecommunications SONATEL generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Societe Nationale des Telecommunications SONATEL WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Societe Nationale des Telecommunications SONATEL WACC % Chart
Societe Nationale des Telecommunications SONATEL Annual Data
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Societe Nationale des Telecommunications SONATEL WACC % vs Telecommunication Services Industry
Societe Nationale des Telecommunications SONATEL WACC % Calculation
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Societe Nationale des Telecommunications SONATEL's market capitalization (E) is XOF1520000.000 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Societe Nationale des Telecommunications SONATEL's latest one-year annual average Book Value of Debt (D) is XOF433072.5 Mil.
a) weight of equity = E / (E + D) = 1520000.000 / (1520000.000 + 433072.5) = 0.7783
b) weight of debt = D / (E + D) = 433072.5 / (1520000.000 + 433072.5) = 0.2217
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.551%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Societe Nationale des Telecommunications SONATEL's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.551% + 1 * 6% = 10.551%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, Societe Nationale des Telecommunications SONATEL's interest expense (positive number) was XOF25844 Mil. Its total Book Value of Debt (D) is XOF433072.5 Mil.
Cost of Debt = 25844 / 433072.5 = 5.9676%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated annual Tax Rate = 235398 / 648987 = 36.27%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Societe Nationale des Telecommunications SONATEL (XBRV:SNTS) has a WACC % of 9.06% as of Jul. 15, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Societe Nationale des Telecommunications SONATEL and its competitors. This is near median its historical median of 8.94. Over the past decade, Societe Nationale des Telecommunications SONATEL's WACC % has ranged from 6.86 to 1,039.32. According to the industry distribution chart, Societe Nationale des Telecommunications SONATEL ranks #228 out of 371 companies in the Telecommunication Services industry, placing it in the top 61.5%.
Is Societe Nationale des Telecommunications SONATEL's WACC % too high?
Societe Nationale des Telecommunications SONATEL's current WACC % of 9.06% is near median its 10-year median of 8.94. Over the past 10 years, this metric has ranged from a low of 6.86 to a high of 1,039.32. The Telecommunication Services industry median WACC % is 7.61. Societe Nationale des Telecommunications SONATEL's value of 9.06% is 19.1% above this industry median. Based on the distribution chart, Societe Nationale des Telecommunications SONATEL ranks #228 out of 371 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Societe Nationale des Telecommunications SONATEL has a GF Score™ of 100/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Societe Nationale des Telecommunications SONATEL's WACC % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Societe Nationale des Telecommunications SONATEL ranks #228 out of 371 companies for WACC %. This places Societe Nationale des Telecommunications SONATEL in the lower half of its industry. The industry median WACC % is 7.61. Societe Nationale des Telecommunications SONATEL's value of 9.06% is 19.1% above this benchmark. Historically, Societe Nationale des Telecommunications SONATEL's own WACC % has ranged from 6.86 to 1,039.32 over the past decade. While the company's 10-year median is 8.94 vs. the industry median of 7.61, Societe Nationale des Telecommunications SONATEL has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Telecommunication Services company?
The median WACC % among Telecommunication Services companies is 7.61, based on 371 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Societe Nationale des Telecommunications SONATEL's current WACC % of 9.06% is 19.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Societe Nationale des Telecommunications SONATEL and its competitors. For the Telecommunication Services industry, the median WACC % is 7.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Societe Nationale des Telecommunications SONATEL's current WACC % is 9.06%, which is near median its own 10-year median of 8.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Societe Nationale des Telecommunications SONATEL stock overvalued right now?
Based on GuruFocus' analysis, Societe Nationale des Telecommunications SONATEL (XBRV:SNTS) is currently considered Modestly Overvalued. The stock's GF Value™ is XOF27,196.98, compared to a current price of XOF30,900.00 — trading 13.6% above its estimated fair value. The current WACC % is 9.06%, which is near median its 10-year median of 8.94 and 19.1% above the Telecommunication Services industry median of 7.61. Societe Nationale des Telecommunications SONATEL's overall GF Score™ is 100/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Societe Nationale des Telecommunications SONATEL (XBRV:SNTS), the current WACC % is 9.06% as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Societe Nationale des Telecommunications SONATEL (XBRV:SNTS) Overvalued in 2026?
Based on GuruFocus' analysis, Societe Nationale des Telecommunications SONATEL stock appears to be overvalued.
The current stock price of XOF30,900.00 is trading 13.6% above its estimated GF Value™ of XOF27,196.98.
GuruFocus considers Societe Nationale des Telecommunications SONATEL to be Modestly Overvalued.
Key valuation signals for XBRV:SNTS:
WACC %: 9.06% (near median its 10-year median of 8.94)
GF Value™: XOF27,196.98 vs. price of XOF30,900.00 (13.6% above fair value)
Industry Position: 19.1% above the Telecommunication Services median (#228 of 371)
No single metric tells the full story. See the XBRV:SNTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Societe Nationale des Telecommunications SONATEL Business Description
Societe Nationale des Telecommunications SONATEL provides telecommunications solutions in the areas of fixed, mobile, Internet, television and data serving individuals and businesses. The company generates maximum revenue from Mobile including data services ad geographically from Africa.
100GF Score
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