The WACC of Shake Shack Inc (SHAK) is 6.7%.
Range | Selected | |
Cost of equity | 5.60% - 8.10% | 6.85% |
Tax rate | 10.20% - 16.90% | 13.55% |
Cost of debt | 4.10% - 4.50% | 4.30% |
WACC | 5.5% - 7.8% | 6.7% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.38 | 0.58 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 5.60% | 8.10% |
Tax rate | 10.20% | 16.90% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 4.10% | 4.50% |
After-tax WACC | 5.5% | 7.8% |
Selected WACC | 6.7% | |