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Seacoast Banking Corp of Florida (SBCF) — WACC Analysis

WACC Breakdown

Seacoast Banking Corp of Florida (SBCF) has a weighted average cost of capital (WACC) of 15.4%. The cost of equity is 9.1%, derived from a beta of 0.96 and a risk-free rate of 5.0%. The after-tax cost of debt is 202.5%. The capital structure is 96.7% equity and 3.3% debt.

Interpretation

A WACC of 15.4% indicates that the market perceives Seacoast Banking Corp of Florida as higher-risk, requiring a greater return to compensate investors.

Investors can compare SBCF's WACC of 15.4% against industry peers to gauge its relative financing costs. A beta of 0.96 reflects the stock's volatility relative to the broader market.

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VALUATION

SBCF WACC: 15.43% for Seacoast Banking Corp of Florida

Current inputs imply a 9.08% cost of equity and a 256.30% 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

Seacoast Banking Corp of Florida Common Stock (SBCF) WACC Results
Weighted Average Cost of Capital
15.43%
Cost of Equity
9.08%
Risk-Free Rate4.96%
Beta0.96
Market Risk Premium4.23%
Cost of Debt
202.48%
Pre-Tax Cost of Debt256.30%
Tax Rate21.00%
Tax Shield53.82%
Capital Structure
Equity: 96.72%($3326.83M)
Debt: 3.28%($112.91M)
Equity Component
8.78%
96.72% × 9.08%
Debt Component
6.65%
3.28% × 202.48%

Seacoast Banking Corp of Florida (SBCF) WACC in context

Seacoast Banking Corp of Florida (SBCF) currently screens with an estimated WACC of 15.43%. That blends a 9.08% cost of equity, a 256.30% pre-tax cost of debt, and a 96.72% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What SBCF WACC implies

A 15.43% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates SBCF

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.96 and equity accounts for 96.72% 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.