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Safe Bulkers, Inc. (SB) — WACC Analysis

WACC Breakdown

Safe Bulkers, Inc. (SB) has a weighted average cost of capital (WACC) of 6.9%. The cost of equity is 8.5%, derived from a beta of 0.86 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.4%. The capital structure is 61.3% equity and 38.7% debt.

Interpretation

A WACC of 6.9% suggests that the market views Safe Bulkers, Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare SB's WACC of 6.9% against industry peers to gauge its relative financing costs. A beta of 0.86 reflects the stock's volatility relative to the broader market.

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VALUATION

SB WACC: 6.90% for Safe Bulkers, Inc.

Current inputs imply a 8.51% cost of equity and a 5.53% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Safe Bulkers, Inc. Common Stock (SB) WACC Results
Weighted Average Cost of Capital
6.90%
Cost of Equity
8.51%
Risk-Free Rate4.67%
Beta0.86
Market Risk Premium4.23%
Cost of Debt
4.37%
Pre-Tax Cost of Debt5.53%
Tax Rate21.00%
Tax Shield1.16%
Capital Structure
Equity: 61.26%($867.62M)
Debt: 38.74%($548.59M)
Equity Component
5.21%
61.26% × 8.51%
Debt Component
1.69%
38.74% × 4.37%

Safe Bulkers, Inc. (SB) WACC in context

Safe Bulkers, Inc. (SB) currently screens with an estimated WACC of 6.90%. That blends a 8.51% cost of equity, a 5.53% pre-tax cost of debt, and a 61.26% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What SB WACC implies

A 6.90% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates SB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.86 and equity accounts for 61.26% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.