The WACC of Chipotle Mexican Grill Inc (CMG) is 6.5%.
Range | Selected | |
Cost of equity | 7.80% - 10.60% | 9.20% |
Tax rate | 22.60% - 23.70% | 23.15% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 5.9% - 7.2% | 6.5% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.86 | 1.02 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.80% | 10.60% |
Tax rate | 22.60% | 23.70% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 5.9% | 7.2% |
Selected WACC | 6.5% | |