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The ONE Group Hospitality, Inc. Common Stock (STKS) — WACC Analysis

WACC Breakdown

The ONE Group Hospitality, Inc. Common Stock (STKS) has a weighted average cost of capital (WACC) of 10.7%. The cost of equity is 10.5%, derived from a beta of 1.38 and a risk-free rate of 5.2%. The after-tax cost of debt is 10.7%. The capital structure is 12.6% equity and 87.4% debt.

Interpretation

A WACC of 10.7% is moderate, reflecting the market's balanced risk assessment of The ONE Group Hospitality, Inc. Common Stock.

Investors can compare STKS's WACC of 10.7% against industry peers to gauge its relative financing costs. A beta of 1.38 reflects the stock's volatility relative to the broader market.

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VALUATION

STKS WACC: 10.70% for The ONE Group Hospitality, Inc. Common Stock

Current inputs imply a 10.52% cost of equity and a 10.73% 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%

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The ONE Group Hospitality, Inc. Common Stock Common Stock (STKS) WACC Results
Weighted Average Cost of Capital
10.70%
Cost of Equity
10.52%
Risk-Free Rate5.22%
Beta1.38
Market Risk Premium4.23%
Cost of Debt
10.73%
Pre-Tax Cost of Debt10.73%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 12.60%($48.80M)
Debt: 87.40%($338.43M)
Equity Component
1.33%
12.60% × 10.52%
Debt Component
9.37%
87.40% × 10.73%

The ONE Group Hospitality, Inc. Common Stock (STKS) WACC in context

The ONE Group Hospitality, Inc. Common Stock (STKS) currently screens with an estimated WACC of 10.70%. That blends a 10.52% cost of equity, a 10.73% pre-tax cost of debt, and a 12.60% 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 STKS WACC implies

A 10.70% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates STKS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.38 and equity accounts for 12.60% 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.