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Martin Midstream Partners LP (MMLP) — WACC Analysis

WACC Breakdown

Martin Midstream Partners LP (MMLP) has a weighted average cost of capital (WACC) of 12.0%. The cost of equity is 8.0%, derived from a beta of 0.50 and a risk-free rate of 5.2%. The after-tax cost of debt is 12.7%. The capital structure is 15.0% equity and 85.0% debt.

Interpretation

A WACC of 12.0% is moderate, reflecting the market's balanced risk assessment of Martin Midstream Partners LP.

Investors can compare MMLP's WACC of 12.0% against industry peers to gauge its relative financing costs. A beta of 0.50 reflects the stock's volatility relative to the broader market.

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VALUATION

MMLP WACC: 11.98% for Martin Midstream Partners LP

Current inputs imply a 8.04% cost of equity and a 12.68% 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 Midstream Partners LP Common Stock (MMLP) WACC Results
Weighted Average Cost of Capital
11.98%
Cost of Equity
8.04%
Risk-Free Rate5.22%
Beta0.50
Market Risk Premium4.23%
Cost of Debt
12.68%
Pre-Tax Cost of Debt12.68%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 14.96%($79.81M)
Debt: 85.04%($453.75M)
Equity Component
1.20%
14.96% × 8.04%
Debt Component
10.78%
85.04% × 12.68%

Martin Midstream Partners LP (MMLP) WACC in context

Martin Midstream Partners LP (MMLP) currently screens with an estimated WACC of 11.98%. That blends a 8.04% cost of equity, a 12.68% pre-tax cost of debt, and a 14.96% 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 MMLP WACC implies

A 11.98% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MMLP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.50 and equity accounts for 14.96% 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.