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Brinker International, Inc. (EAT) — WACC Analysis

WACC Breakdown

Brinker International, Inc. (EAT) has a weighted average cost of capital (WACC) of 9.8%. The cost of equity is 9.9%, derived from a beta of 1.23 and a risk-free rate of 5.0%. The after-tax cost of debt is 8.9%. The capital structure is 95.0% equity and 5.0% debt.

Interpretation

A WACC of 9.8% is moderate, reflecting the market's balanced risk assessment of Brinker International, Inc..

Investors can compare EAT's WACC of 9.8% against industry peers to gauge its relative financing costs. A beta of 1.23 reflects the stock's volatility relative to the broader market.

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VALUATION

EAT WACC: 9.81% for Brinker International, Inc.

Current inputs imply a 9.86% cost of equity and a 11.26% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Brinker International, Inc. Common Stock (EAT) WACC Results
Weighted Average Cost of Capital
9.81%
Cost of Equity
9.86%
Risk-Free Rate4.98%
Beta1.23
Market Risk Premium4.23%
Cost of Debt
8.90%
Pre-Tax Cost of Debt11.26%
Tax Rate21.00%
Tax Shield2.37%
Capital Structure
Equity: 94.96%($9135.24M)
Debt: 5.04%($484.80M)
Equity Component
9.36%
94.96% × 9.86%
Debt Component
0.45%
5.04% × 8.90%

Brinker International, Inc. (EAT) WACC in context

Brinker International, Inc. (EAT) currently screens with an estimated WACC of 9.81%. That blends a 9.86% cost of equity, a 11.26% pre-tax cost of debt, and a 94.96% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What EAT WACC implies

A 9.81% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates EAT

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.23 and equity accounts for 94.96% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.