SHAK
Shake Shack Inc
Price:  
80.11 
USD
Volume:  
826,599.00
United States | Hotels, Restaurants & Leisure
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SHAK WACC - Weighted Average Cost of Capital

The WACC of Shake Shack Inc (SHAK) is 7.1%.

The Cost of Equity of Shake Shack Inc (SHAK) is 7.40%.
The Cost of Debt of Shake Shack Inc (SHAK) is 4.35%.

Range Selected
Cost of equity 6.20% - 8.60% 7.40%
Tax rate 10.20% - 16.90% 13.55%
Cost of debt 4.10% - 4.60% 4.35%
WACC 6.0% - 8.3% 7.1%
WACC

SHAK WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.5 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.20% 8.60%
Tax rate 10.20% 16.90%
Debt/Equity ratio 0.07 0.07
Cost of debt 4.10% 4.60%
After-tax WACC 6.0% 8.3%
Selected WACC 7.1%