SEE WACC - Weighted Average Cost of Capital

The WACC of Sealed Air Corp (SEE) is 6.4%.

The Cost of Equity of Sealed Air Corp (SEE) is 8.50%.

The Cost of Debt of Sealed Air Corp (SEE) is 6.35%.

	Range	Selected
Cost of equity	7.10% - 9.90%	8.50%
Tax rate	27.90% - 31.90%	29.90%
Cost of debt	5.70% - 7.00%	6.35%
WACC	5.5% - 7.3%	6.4%

WACC

SEE WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	0.71	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	7.10%	9.90%

Tax rate	27.90%	31.90%
Debt/Equity ratio	1.07	1.07
Cost of debt	5.70%	7.00%

After-tax WACC	5.5%	7.3%


Selected WACC	6.4%

SEE'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 SEE:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.71) + 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.