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Methode Electronics (MEI) — WACC Analysis

WACC Breakdown

Methode Electronics (MEI) has a weighted average cost of capital (WACC) of 9.2%. The cost of equity is 10.2%, derived from a beta of 1.28 and a risk-free rate of 5.2%. The after-tax cost of debt is 7.3%. The capital structure is 63.6% equity and 36.4% debt.

Interpretation

A WACC of 9.2% is moderate, reflecting the market's balanced risk assessment of Methode Electronics.

Investors can compare MEI's WACC of 9.2% against industry peers to gauge its relative financing costs. A beta of 1.28 reflects the stock's volatility relative to the broader market.

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VALUATION

MEI WACC: 9.16% for Methode Electronics

Current inputs imply a 10.24% cost of equity and a 7.28% 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

Methode Electronics Common Stock (MEI) WACC Results
Weighted Average Cost of Capital
9.16%
Cost of Equity
10.24%
Risk-Free Rate5.22%
Beta1.28
Market Risk Premium4.23%
Cost of Debt
7.28%
Pre-Tax Cost of Debt7.28%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 63.63%($543.23M)
Debt: 36.37%($310.50M)
Equity Component
6.52%
63.63% × 10.24%
Debt Component
2.65%
36.37% × 7.28%

Methode Electronics (MEI) WACC in context

Methode Electronics (MEI) currently screens with an estimated WACC of 9.16%. That blends a 10.24% cost of equity, a 7.28% pre-tax cost of debt, and a 63.63% 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 MEI WACC implies

A 9.16% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MEI

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.28 and equity accounts for 63.63% 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.