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Miller Industries, Inc. (MLR) — WACC Analysis

WACC Breakdown

Miller Industries, Inc. (MLR) has a weighted average cost of capital (WACC) of 8.9%. The cost of equity is 8.8%, derived from a beta of 0.77 and a risk-free rate of 5.2%. The after-tax cost of debt is 19.2%. The capital structure is 99.5% equity and 0.5% debt.

Interpretation

A WACC of 8.9% is moderate, reflecting the market's balanced risk assessment of Miller Industries, Inc..

Investors can compare MLR's WACC of 8.9% against industry peers to gauge its relative financing costs. A beta of 0.77 reflects the stock's volatility relative to the broader market.

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VALUATION

MLR WACC: 8.86% for Miller Industries, Inc.

Current inputs imply a 8.80% cost of equity and a 24.27% 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

Miller Industries, Inc. Common Stock (MLR) WACC Results
Weighted Average Cost of Capital
8.86%
Cost of Equity
8.80%
Risk-Free Rate5.22%
Beta0.77
Market Risk Premium4.23%
Cost of Debt
19.17%
Pre-Tax Cost of Debt24.27%
Tax Rate21.00%
Tax Shield5.10%
Capital Structure
Equity: 99.47%($595.54M)
Debt: 0.53%($3.17M)
Equity Component
8.75%
99.47% × 8.80%
Debt Component
0.10%
0.53% × 19.17%

Miller Industries, Inc. (MLR) WACC in context

Miller Industries, Inc. (MLR) currently screens with an estimated WACC of 8.86%. That blends a 8.80% cost of equity, a 24.27% pre-tax cost of debt, and a 99.47% 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 MLR WACC implies

A 8.86% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MLR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.77 and equity accounts for 99.47% 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.