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Jack in the Box Inc. (JACK) — WACC Analysis

WACC Breakdown

Jack in the Box Inc. (JACK) has a weighted average cost of capital (WACC) of 5.1%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.3%. The capital structure is 16.4% equity and 83.6% debt.

Interpretation

A WACC of 5.1% suggests that the market views Jack in the Box Inc. as relatively low-risk, with a lower cost of financing.

Investors can compare JACK's WACC of 5.1% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

JACK WACC: 5.07% for Jack in the Box Inc.

Current inputs imply a 9.19% cost of equity and a 5.39% 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

Jack in the Box Inc. Common Stock (JACK) WACC Results
Weighted Average Cost of Capital
5.07%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
4.26%
Pre-Tax Cost of Debt5.39%
Tax Rate21.00%
Tax Shield1.13%
Capital Structure
Equity: 16.44%($281.17M)
Debt: 83.56%($1428.67M)
Equity Component
1.51%
16.44% × 9.19%
Debt Component
3.56%
83.56% × 4.26%

Jack in the Box Inc. (JACK) WACC in context

Jack in the Box Inc. (JACK) currently screens with an estimated WACC of 5.07%. That blends a 9.19% cost of equity, a 5.39% pre-tax cost of debt, and a 16.44% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What JACK WACC implies

A 5.07% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates JACK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 16.44% 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.