SEB
Seaboard Corp
Price:  
2,497.96 
USD
Volume:  
1,590.00
United States | Food Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SEB WACC - Weighted Average Cost of Capital

The WACC of Seaboard Corp (SEB) is 5.5%.

The Cost of Equity of Seaboard Corp (SEB) is 6.45%.
The Cost of Debt of Seaboard Corp (SEB) is 4.80%.

Range Selected
Cost of equity 5.60% - 7.30% 6.45%
Tax rate 6.60% - 31.50% 19.05%
Cost of debt 4.00% - 5.60% 4.80%
WACC 4.9% - 6.0% 5.5%
WACC

SEB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.37 0.43
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.60% 7.30%
Tax rate 6.60% 31.50%
Debt/Equity ratio 0.57 0.57
Cost of debt 4.00% 5.60%
After-tax WACC 4.9% 6.0%
Selected WACC 5.5%

SEB'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 SEB:

cost_of_equity (6.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.37) + 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.