BDL
Flanigan's Enterprises Inc
Price:  
33.69 
USD
Volume:  
960.00
United States | Hotels, Restaurants & Leisure
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BDL WACC - Weighted Average Cost of Capital

The WACC of Flanigan's Enterprises Inc (BDL) is 7.8%.

The Cost of Equity of Flanigan's Enterprises Inc (BDL) is 9.25%.
The Cost of Debt of Flanigan's Enterprises Inc (BDL) is 4.40%.

Range Selected
Cost of equity 8.10% - 10.40% 9.25%
Tax rate 6.00% - 7.10% 6.55%
Cost of debt 4.00% - 4.80% 4.40%
WACC 6.9% - 8.7% 7.8%
WACC

BDL WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.92 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.10% 10.40%
Tax rate 6.00% 7.10%
Debt/Equity ratio 0.41 0.41
Cost of debt 4.00% 4.80%
After-tax WACC 6.9% 8.7%
Selected WACC 7.8%

BDL'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 BDL:

cost_of_equity (9.25%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.92) + 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.