Betting each way is really 2 bets. 1 on the win only and the second at 1/5 odds on a place 1st to 4th.
If you bet each way on Seby Baby say 10 e.w and he wins you would get 10 for the win (1/1 odds) part of the bet and £2 for the each way part. So total winnings £12 plus you get your £20 stake money back. Total return £32
But if he was 2-4th you only win £2 and loose the £10 stake money on the win part of the bet. You do get the £10 stake back from the place part of the bet. So total return is only £12 so you are down £8 on your original £20 stake despite having 'won'
So really if going each way on Seb this race is damage limitation at best.
If you just go for the straight win £20 on the nose and he wins you get £20 winnings plus your £20 stake back. Total return £40.
There are more examples in the very 1st post. It's not really that complicated once you get the hang of it.
Bottom line is going e.w. on odds less than 5/1 is not going to pay out in profit for a place 2-4th.