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Martin Marietta Materials (MLM) — WACC Analysis

WACC Breakdown

Martin Marietta Materials (MLM) has a weighted average cost of capital (WACC) of 8.1%. The cost of equity is 8.9%, derived from a beta of 0.97 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.1%. The capital structure is 86.4% equity and 13.6% debt.

Interpretation

A WACC of 8.1% is moderate, reflecting the market's balanced risk assessment of Martin Marietta Materials.

Investors can compare MLM's WACC of 8.1% against industry peers to gauge its relative financing costs. A beta of 0.97 reflects the stock's volatility relative to the broader market.

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VALUATION

MLM WACC: 8.08% for Martin Marietta Materials

Current inputs imply a 8.88% cost of equity and a 3.88% 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

Martin Marietta Materials Common Stock (MLM) WACC Results
Weighted Average Cost of Capital
8.08%
Cost of Equity
8.88%
Risk-Free Rate4.73%
Beta0.97
Market Risk Premium4.23%
Cost of Debt
3.07%
Pre-Tax Cost of Debt3.88%
Tax Rate21.00%
Tax Shield0.82%
Capital Structure
Equity: 86.37%($37.71B)
Debt: 13.63%($5951.00M)
Equity Component
7.67%
86.37% × 8.88%
Debt Component
0.42%
13.63% × 3.07%

Martin Marietta Materials (MLM) WACC in context

Martin Marietta Materials (MLM) currently screens with an estimated WACC of 8.08%. That blends a 8.88% cost of equity, a 3.88% pre-tax cost of debt, and a 86.37% 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 MLM WACC implies

A 8.08% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MLM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.97 and equity accounts for 86.37% 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.