SEAS
SeaWorld Entertainment Inc
Price:  
50.30 
USD
Volume:  
504,322.00
United States | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SEAS WACC - Weighted Average Cost of Capital

The WACC of SeaWorld Entertainment Inc (SEAS) is 7.4%.

The Cost of Equity of SeaWorld Entertainment Inc (SEAS) is 9.50%.
The Cost of Debt of SeaWorld Entertainment Inc (SEAS) is 5.45%.

Range Selected
Cost of equity 7.70% - 11.30% 9.50%
Tax rate 18.80% - 26.60% 22.70%
Cost of debt 5.10% - 5.80% 5.45%
WACC 6.3% - 8.5% 7.4%
WACC

SEAS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.83 1.14
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 11.30%
Tax rate 18.80% 26.60%
Debt/Equity ratio 0.66 0.66
Cost of debt 5.10% 5.80%
After-tax WACC 6.3% 8.5%
Selected WACC 7.4%

SEAS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for SEAS:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.83) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.