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Montauk Renewables, Inc. Common Stock (MNTK) — WACC Analysis

WACC Breakdown

Montauk Renewables, Inc. Common Stock (MNTK) has a weighted average cost of capital (WACC) of 7.9%. The cost of equity is 10.2%, derived from a beta of 1.25 and a risk-free rate of 5.2%. The after-tax cost of debt is 2.8%. The capital structure is 69.5% equity and 30.5% debt.

Interpretation

A WACC of 7.9% suggests that the market views Montauk Renewables, Inc. Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare MNTK's WACC of 7.9% against industry peers to gauge its relative financing costs. A beta of 1.25 reflects the stock's volatility relative to the broader market.

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VALUATION

MNTK WACC: 7.90% for Montauk Renewables, Inc. Common Stock

Current inputs imply a 10.15% cost of equity and a 3.49% 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

Montauk Renewables, Inc. Common Stock Common Stock (MNTK) WACC Results
Weighted Average Cost of Capital
7.90%
Cost of Equity
10.15%
Risk-Free Rate5.22%
Beta1.25
Market Risk Premium4.23%
Cost of Debt
2.75%
Pre-Tax Cost of Debt3.49%
Tax Rate21.00%
Tax Shield0.73%
Capital Structure
Equity: 69.51%($341.62M)
Debt: 30.49%($149.82M)
Equity Component
7.06%
69.51% × 10.15%
Debt Component
0.84%
30.49% × 2.75%

Montauk Renewables, Inc. Common Stock (MNTK) WACC in context

Montauk Renewables, Inc. Common Stock (MNTK) currently screens with an estimated WACC of 7.90%. That blends a 10.15% cost of equity, a 3.49% pre-tax cost of debt, and a 69.51% 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 MNTK WACC implies

A 7.90% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates MNTK

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.25 and equity accounts for 69.51% 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.