Question 1

What is Jack in the Box Inc.'s WACC?

Accepted Answer

Jack in the Box Inc. (JACK) has a Weighted Average Cost of Capital (WACC) of 5.20%. This is calculated using a Cost of Equity of 8.53% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 4.71%, with an equity weight of 12.69% in the capital structure.

Question 2

Is Jack in the Box Inc.'s WACC high or low?

Accepted Answer

Jack in the Box Inc.'s WACC of 5.20% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Jack in the Box Inc.'s WACC calculated?

Accepted Answer

Jack in the Box Inc.'s WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.53% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 4.71%. The capital structure is 12.69% equity and 87.31% debt.

Jack in the Box Inc. (JACK) — WACC 分析

WACC 构成

解读

Jack in the Box Inc.（JACK）WACC：5.20%

WACC计算器

Jack in the Box Inc.（JACK） WACC 解读

JACK 公司分析

JACK DCF 估值

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