CAKE
Cheesecake Factory Inc
Price:  
39.56 
USD
Volume:  
831,430.00
United States | Hotels, Restaurants & Leisure
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CAKE WACC - Weighted Average Cost of Capital

The WACC of Cheesecake Factory Inc (CAKE) is 7.5%.

The Cost of Equity of Cheesecake Factory Inc (CAKE) is 8.40%.
The Cost of Debt of Cheesecake Factory Inc (CAKE) is 4.30%.

Range Selected
Cost of equity 7.30% - 9.50% 8.40%
Tax rate 6.10% - 17.10% 11.60%
Cost of debt 4.00% - 4.60% 4.30%
WACC 6.6% - 8.5% 7.5%
WACC

CAKE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.74 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.50%
Tax rate 6.10% 17.10%
Debt/Equity ratio 0.23 0.23
Cost of debt 4.00% 4.60%
After-tax WACC 6.6% 8.5%
Selected WACC 7.5%