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Malibu Boats, Inc. Class A (MBUU) — WACC Analysis

WACC Breakdown

Malibu Boats, Inc. Class A (MBUU) has a weighted average cost of capital (WACC) of 7.8%. The cost of equity is 10.1%, derived from a beta of 1.23 and a risk-free rate of 5.2%. The after-tax cost of debt is 1.7%. The capital structure is 72.1% equity and 27.9% debt.

Interpretation

A WACC of 7.8% suggests that the market views Malibu Boats, Inc. Class A as relatively low-risk, with a lower cost of financing.

Investors can compare MBUU's WACC of 7.8% against industry peers to gauge its relative financing costs. A beta of 1.23 reflects the stock's volatility relative to the broader market.

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VALUATION

MBUU WACC: 7.75% for Malibu Boats, Inc. Class A

Current inputs imply a 10.10% cost of equity and a 2.16% 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

Malibu Boats, Inc. Class A Common Stock (MBUU) WACC Results
Weighted Average Cost of Capital
7.75%
Cost of Equity
10.10%
Risk-Free Rate5.22%
Beta1.23
Market Risk Premium4.23%
Cost of Debt
1.70%
Pre-Tax Cost of Debt2.16%
Tax Rate21.00%
Tax Shield0.45%
Capital Structure
Equity: 72.07%($425.83M)
Debt: 27.93%($165.00M)
Equity Component
7.28%
72.07% × 10.10%
Debt Component
0.48%
27.93% × 1.70%

Malibu Boats, Inc. Class A (MBUU) WACC in context

Malibu Boats, Inc. Class A (MBUU) currently screens with an estimated WACC of 7.75%. That blends a 10.10% cost of equity, a 2.16% pre-tax cost of debt, and a 72.07% 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 MBUU WACC implies

A 7.75% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MBUU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.23 and equity accounts for 72.07% 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.