EAT
Brinker International Inc
Price:  
133.08 
USD
Volume:  
1,529,752.00
United States | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

EAT WACC - Weighted Average Cost of Capital

The WACC of Brinker International Inc (EAT) is 6.6%.

The Cost of Equity of Brinker International Inc (EAT) is 6.90%.
The Cost of Debt of Brinker International Inc (EAT) is 4.80%.

Range Selected
Cost of equity 5.90% - 7.90% 6.90%
Tax rate 7.90% - 10.80% 9.35%
Cost of debt 4.70% - 4.90% 4.80%
WACC 5.8% - 7.5% 6.6%
WACC

EAT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.45 0.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.90% 7.90%
Tax rate 7.90% 10.80%
Debt/Equity ratio 0.11 0.11
Cost of debt 4.70% 4.90%
After-tax WACC 5.8% 7.5%
Selected WACC 6.6%

EAT'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 EAT:

cost_of_equity (6.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.45) + 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.