GCFB
Granite City Food & Brewery Ltd
Price:  
0.00 
USD
Volume:  
1,960.00
United States | Hotels, Restaurants & Leisure
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GCFB WACC - Weighted Average Cost of Capital

The WACC of Granite City Food & Brewery Ltd (GCFB) is 6.0%.

The Cost of Equity of Granite City Food & Brewery Ltd (GCFB) is 39,600.90%.
The Cost of Debt of Granite City Food & Brewery Ltd (GCFB) is 5.00%.

Range Selected
Cost of equity 24,455.00% - 54,746.80% 39,600.90%
Tax rate 1.00% - 1.50% 1.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 5.6% - 6.3% 6.0%
WACC

GCFB WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 5315.46 9775.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 24,455.00% 54,746.80%
Tax rate 1.00% 1.50%
Debt/Equity ratio 38785.16 38785.16
Cost of debt 5.00% 5.00%
After-tax WACC 5.6% 6.3%
Selected WACC 6.0%

GCFB'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 GCFB:

cost_of_equity (39,600.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (5315.46) + 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.