SHAK
Shake Shack Inc
Price:  
97.51 
USD
Volume:  
525,290.00
United States | Hotels, Restaurants & Leisure
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SHAK WACC - Weighted Average Cost of Capital

The WACC of Shake Shack Inc (SHAK) is 7.4%.

The Cost of Equity of Shake Shack Inc (SHAK) is 7.60%.
The Cost of Debt of Shake Shack Inc (SHAK) is 4.35%.

Range Selected
Cost of equity 6.50% - 8.70% 7.60%
Tax rate 10.20% - 16.90% 13.55%
Cost of debt 4.10% - 4.60% 4.35%
WACC 6.3% - 8.4% 7.4%
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 0.56 0.68
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.50% 8.70%
Tax rate 10.20% 16.90%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.10% 4.60%
After-tax WACC 6.3% 8.4%
Selected WACC 7.4%