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MP Materials Corp. (MP) — WACC Analysis

WACC Breakdown

MP Materials Corp. (MP) has a weighted average cost of capital (WACC) of 10.3%. The cost of equity is 11.1%, derived from a beta of 1.64 and a risk-free rate of 5.0%. The after-tax cost of debt is 4.1%. The capital structure is 88.8% equity and 11.2% debt.

Interpretation

A WACC of 10.3% is moderate, reflecting the market's balanced risk assessment of MP Materials Corp..

Investors can compare MP's WACC of 10.3% against industry peers to gauge its relative financing costs. A beta of 1.64 reflects the stock's volatility relative to the broader market.

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VALUATION

MP WACC: 10.30% for MP Materials Corp.

Current inputs imply a 11.08% cost of equity and a 4.07% 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

MP Materials Corp. Common Stock (MP) WACC Results
Weighted Average Cost of Capital
10.30%
Cost of Equity
11.08%
Risk-Free Rate5.05%
Beta1.64
Market Risk Premium4.23%
Cost of Debt
4.07%
Pre-Tax Cost of Debt4.07%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 88.81%($7416.15M)
Debt: 11.19%($934.58M)
Equity Component
9.84%
88.81% × 11.08%
Debt Component
0.46%
11.19% × 4.07%

MP Materials Corp. (MP) WACC in context

MP Materials Corp. (MP) currently screens with an estimated WACC of 10.30%. That blends a 11.08% cost of equity, a 4.07% pre-tax cost of debt, and a 88.81% 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 MP WACC implies

A 10.30% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MP

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.64 and equity accounts for 88.81% 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.