Texas Roadhouse DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.1383%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4%

24 Months Beta: 0.62

Historical Data

Revenue growth in the last 10 years (CAGR): 11.51%

Earnings growth in the last 10 years (CAGR): 16.17%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 20.73%

Future Assumptions

End of Year FCF growth: 10%

Growth until end of 2026: 15%

Growth until end of 2034: 9%

Perpetual growth: 3%

Net Debt: 0.686B

Outstanding Stock Options Present Value Assumption: 0B

Restricted Stock Units Present Value Assumption: $0.086B

Stock Valuation based on these assumptions: $193

Last update 06/02/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Texas Roadhouse (TXRH) and I don’t plan to add a position in the coming days.