STKS
One Group Hospitality Inc
Price:  
4.41 
USD
Volume:  
265,843.00
United States | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

STKS WACC - Weighted Average Cost of Capital

The WACC of One Group Hospitality Inc (STKS) is 9.6%.

The Cost of Equity of One Group Hospitality Inc (STKS) is 9.50%.
The Cost of Debt of One Group Hospitality Inc (STKS) is 12.80%.

Range Selected
Cost of equity 7.40% - 11.60% 9.50%
Tax rate 19.60% - 29.80% 24.70%
Cost of debt 12.40% - 13.20% 12.80%
WACC 9.2% - 9.9% 9.6%
WACC

STKS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.77 1.2
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 11.60%
Tax rate 19.60% 29.80%
Debt/Equity ratio 2.62 2.62
Cost of debt 12.40% 13.20%
After-tax WACC 9.2% 9.9%
Selected WACC 9.6%

STKS'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 STKS:

cost_of_equity (9.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.77) + 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.