SEDO
Seedo Corp
Price:  
0.7 
USD
Volume:  
17,500
Israel | Professional, Scientific, and Technical Services

SEDO WACC - Weighted Average Cost of Capital

The WACC of Seedo Corp (SEDO) is 7.7%.

The Cost of Equity of Seedo Corp (SEDO) is 8.6%.
The Cost of Debt of Seedo Corp (SEDO) is 5%.

RangeSelected
Cost of equity7.5% - 9.7%8.6%
Tax rate27.0% - 27.0%27%
Cost of debt5.0% - 5.0%5%
WACC6.9% - 8.6%7.7%
WACC

SEDO WACC calculation

CategoryLowHigh
Long-term bond rate3.2%3.7%
Equity market risk premium4.2%5.2%
Adjusted beta1.031.05
Additional risk adjustments0.0%0.5%
Cost of equity7.5%9.7%
Tax rate27.0%27.0%
Debt/Equity ratio
0.210.21
Cost of debt5.0%5.0%
After-tax WACC6.9%8.6%
Selected WACC7.7%

SEDO'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 SEDO:

cost_of_equity (8.60%) = risk_free_rate (3.45%) + equity_risk_premium (4.70%) * adjusted_beta (1.03) + 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.