CHUY
Chuy's Holdings Inc
Price:  
37.48 
USD
Volume:  
1,223,186.00
United States | Hotels, Restaurants & Leisure
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CHUY WACC - Weighted Average Cost of Capital

The WACC of Chuy's Holdings Inc (CHUY) is 7.4%.

The Cost of Equity of Chuy's Holdings Inc (CHUY) is 11.30%.
The Cost of Debt of Chuy's Holdings Inc (CHUY) is 4.50%.

Range Selected
Cost of equity 9.40% - 13.20% 11.30%
Tax rate 13.60% - 33.80% 23.70%
Cost of debt 4.50% - 4.50% 4.50%
WACC 6.6% - 8.1% 7.4%
WACC

CHUY WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.2 1.5
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.40% 13.20%
Tax rate 13.60% 33.80%
Debt/Equity ratio 1 1
Cost of debt 4.50% 4.50%
After-tax WACC 6.6% 8.1%
Selected WACC 7.4%

CHUY'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 CHUY:

cost_of_equity (11.30%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.2) + 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.