DIN
Dine Brands Global Inc
Price:  
25.19 
USD
Volume:  
460,429.00
United States | Hotels, Restaurants & Leisure
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DIN WACC - Weighted Average Cost of Capital

The WACC of Dine Brands Global Inc (DIN) is 8.7%.

The Cost of Equity of Dine Brands Global Inc (DIN) is 17.45%.
The Cost of Debt of Dine Brands Global Inc (DIN) is 7.10%.

Range Selected
Cost of equity 15.00% - 19.90% 17.45%
Tax rate 17.10% - 22.90% 20.00%
Cost of debt 5.10% - 9.10% 7.10%
WACC 7.0% - 10.3% 8.7%
WACC

DIN WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 2.43 2.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 19.90%
Tax rate 17.10% 22.90%
Debt/Equity ratio 2.9 2.9
Cost of debt 5.10% 9.10%
After-tax WACC 7.0% 10.3%
Selected WACC 8.7%

DIN'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 DIN:

cost_of_equity (17.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.43) + 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.