Sanofi SA (SAN.PA) WACC Analysis

As of May 15, 2026, Sanofi SA (SAN.PA) carries a Weighted Average Cost of Capital (WACC) of 9.8%. WACC reflects the blended rate Sanofi SA must pay to both equity and debt holders.

Within that, the cost of equity is 9.7%, the cost of debt is 4.0%, and the effective tax rate is 17.5%.

Breakdown of WACC Components

• Long-term bond rate: 3.0% – 3.5%
• Equity market risk premium: 5.8% – 6.8%
• Adjusted beta: 1.15 – 1.28
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.23

What It Means for Investors

With a selected WACC of 9.8%, Sanofi SA must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.