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SLB Limited (SLB) — WACC Analysis

WACC Breakdown

SLB Limited (SLB) has a weighted average cost of capital (WACC) of 8.0%. The cost of equity is 8.5%, derived from a beta of 0.83 and a risk-free rate of 4.7%. The after-tax cost of debt is 4.3%. The capital structure is 89.2% equity and 10.8% debt.

Interpretation

A WACC of 8.0% is moderate, reflecting the market's balanced risk assessment of SLB Limited.

Investors can compare SLB's WACC of 8.0% against industry peers to gauge its relative financing costs. A beta of 0.83 reflects the stock's volatility relative to the broader market.

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VALUATION

SLB WACC: 8.04% for SLB Limited

Current inputs imply a 8.49% cost of equity and a 5.45% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
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

SLB Limited Common Stock (SLB) WACC Results
Weighted Average Cost of Capital
8.04%
Cost of Equity
8.49%
Risk-Free Rate4.74%
Beta0.83
Market Risk Premium4.23%
Cost of Debt
4.31%
Pre-Tax Cost of Debt5.45%
Tax Rate21.00%
Tax Shield1.14%
Capital Structure
Equity: 89.21%($79.94B)
Debt: 10.79%($9670.00M)
Equity Component
7.57%
89.21% × 8.49%
Debt Component
0.46%
10.79% × 4.31%

SLB Limited (SLB) WACC in context

SLB Limited (SLB) currently screens with an estimated WACC of 8.04%. That blends a 8.49% cost of equity, a 5.45% pre-tax cost of debt, and a 89.21% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What SLB WACC implies

A 8.04% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SLB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.83 and equity accounts for 89.21% 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.