SHAK
Shake Shack Inc
Price:  
133.73 
USD
Volume:  
359,800.00
United States | Hotels, Restaurants & Leisure
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SHAK WACC - Weighted Average Cost of Capital

The WACC of Shake Shack Inc (SHAK) is 6.9%.

The Cost of Equity of Shake Shack Inc (SHAK) is 7.05%.
The Cost of Debt of Shake Shack Inc (SHAK) is 4.30%.

Range Selected
Cost of equity 5.80% - 8.30% 7.05%
Tax rate 10.20% - 16.90% 13.55%
Cost of debt 4.10% - 4.50% 4.30%
WACC 5.7% - 8.1% 6.9%
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 0.42 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 8.30%
Tax rate 10.20% 16.90%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.10% 4.50%
After-tax WACC 5.7% 8.1%
Selected WACC 6.9%