SIEB
Siebert Financial Corp
Price:  
3.61 
USD
Volume:  
73,224
United States | Capital Markets

SIEB WACC - Weighted Average Cost of Capital

The WACC of Siebert Financial Corp (SIEB) is 6.1%.

The Cost of Equity of Siebert Financial Corp (SIEB) is 9.65%.
The Cost of Debt of Siebert Financial Corp (SIEB) is 4.25%.

RangeSelected
Cost of equity7.7% - 11.6%9.65%
Tax rate24.8% - 27.4%26.1%
Cost of debt4.0% - 4.5%4.25%
WACC5.2% - 7.1%6.1%
WACC

SIEB WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.831.2
Additional risk adjustments0.0%0.5%
Cost of equity7.7%11.6%
Tax rate24.8%27.4%
Debt/Equity ratio
1.161.16
Cost of debt4.0%4.5%
After-tax WACC5.2%7.1%
Selected WACC6.1%

SIEB'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 SIEB:

cost_of_equity (9.65%) = 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.