DIN
Dine Brands Global Inc
Price:  
24.33 
USD
Volume:  
473,807.00
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 8.1%.

The Cost of Equity of Dine Brands Global Inc (DIN) is 18.35%.
The Cost of Debt of Dine Brands Global Inc (DIN) is 6.30%.

Range Selected
Cost of equity 14.50% - 22.20% 18.35%
Tax rate 17.10% - 22.90% 20.00%
Cost of debt 5.10% - 7.50% 6.30%
WACC 6.6% - 9.6% 8.1%
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 2.32 3.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.50% 22.20%
Tax rate 17.10% 22.90%
Debt/Equity ratio 3.26 3.26
Cost of debt 5.10% 7.50%
After-tax WACC 6.6% 9.6%
Selected WACC 8.1%

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 (18.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (2.32) + 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.