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MSC Industrial Direct Co., Inc. Class A (MSM) — WACC Analysis

WACC Breakdown

MSC Industrial Direct Co., Inc. Class A (MSM) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 8.5%, derived from a beta of 0.76 and a risk-free rate of 5.0%. The after-tax cost of debt is 10.7%. The capital structure is 97.7% equity and 2.3% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of MSC Industrial Direct Co., Inc. Class A.

Investors can compare MSM's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 0.76 reflects the stock's volatility relative to the broader market.

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VALUATION

MSM WACC: 8.58% for MSC Industrial Direct Co., Inc. Class A

Current inputs imply a 8.53% cost of equity and a 13.59% 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

MSC Industrial Direct Co., Inc. Class A Common Stock (MSM) WACC Results
Weighted Average Cost of Capital
8.58%
Cost of Equity
8.53%
Risk-Free Rate4.98%
Beta0.76
Market Risk Premium4.23%
Cost of Debt
10.74%
Pre-Tax Cost of Debt13.59%
Tax Rate21.00%
Tax Shield2.85%
Capital Structure
Equity: 97.73%($6864.63M)
Debt: 2.27%($159.76M)
Equity Component
8.34%
97.73% × 8.53%
Debt Component
0.24%
2.27% × 10.74%

MSC Industrial Direct Co., Inc. Class A (MSM) WACC in context

MSC Industrial Direct Co., Inc. Class A (MSM) currently screens with an estimated WACC of 8.58%. That blends a 8.53% cost of equity, a 13.59% pre-tax cost of debt, and a 97.73% 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 MSM WACC implies

A 8.58% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MSM

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.76 and equity accounts for 97.73% 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.