Skip to content

Good Times Restaurants Inc. (GTIM) — WACC Analysis

WACC Breakdown

Good Times Restaurants Inc. (GTIM) has a weighted average cost of capital (WACC) of 8.8%. The cost of equity is 8.2%, derived from a beta of 0.56 and a risk-free rate of 5.2%. The after-tax cost of debt is 38.3%. The capital structure is 98.0% equity and 2.0% debt.

Interpretation

A WACC of 8.8% is moderate, reflecting the market's balanced risk assessment of Good Times Restaurants Inc..

Investors can compare GTIM's WACC of 8.8% against industry peers to gauge its relative financing costs. A beta of 0.56 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

GTIM WACC: 8.82% for Good Times Restaurants Inc.

Current inputs imply a 8.21% cost of equity and a 48.43% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
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

Good Times Restaurants Inc. Common Stock (GTIM) WACC Results
Weighted Average Cost of Capital
8.82%
Cost of Equity
8.21%
Risk-Free Rate5.22%
Beta0.56
Market Risk Premium4.23%
Cost of Debt
38.26%
Pre-Tax Cost of Debt48.43%
Tax Rate21.00%
Tax Shield10.17%
Capital Structure
Equity: 97.95%($15.20M)
Debt: 2.05%($0.32M)
Equity Component
8.04%
97.95% × 8.21%
Debt Component
0.78%
2.05% × 38.26%

Good Times Restaurants Inc. (GTIM) WACC in context

Good Times Restaurants Inc. (GTIM) currently screens with an estimated WACC of 8.82%. That blends a 8.21% cost of equity, a 48.43% pre-tax cost of debt, and a 97.95% 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 GTIM WACC implies

A 8.82% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates GTIM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.56 and equity accounts for 97.95% 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.