CAKE
Cheesecake Factory Inc
Price:  
37.37 
USD
Volume:  
1,162,307.00
United States | Hotels, Restaurants & Leisure
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CAKE WACC - Weighted Average Cost of Capital

The WACC of Cheesecake Factory Inc (CAKE) is 7.0%.

The Cost of Equity of Cheesecake Factory Inc (CAKE) is 7.80%.
The Cost of Debt of Cheesecake Factory Inc (CAKE) is 4.25%.

Range Selected
Cost of equity 6.60% - 9.00% 7.80%
Tax rate 6.10% - 17.10% 11.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.1% - 7.9% 7.0%
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 0.6 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.60% 9.00%
Tax rate 6.10% 17.10%
Debt/Equity ratio 0.25 0.25
Cost of debt 4.00% 4.50%
After-tax WACC 6.1% 7.9%
Selected WACC 7.0%