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M&T Bank Corp. (MTB) — WACC Analysis

WACC Breakdown

M&T Bank Corp. (MTB) has a weighted average cost of capital (WACC) of 11.0%. The cost of equity is 9.0%, derived from a beta of 1.00 and a risk-free rate of 4.7%. The after-tax cost of debt is 14.7%. The capital structure is 65.3% equity and 34.7% debt.

Interpretation

A WACC of 11.0% is moderate, reflecting the market's balanced risk assessment of M&T Bank Corp..

Investors can compare MTB's WACC of 11.0% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

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VALUATION

MTB WACC: 10.96% for M&T Bank Corp.

Current inputs imply a 8.96% cost of equity and a 18.64% 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

M&T Bank Corp. Common Stock (MTB) WACC Results
Weighted Average Cost of Capital
10.96%
Cost of Equity
8.96%
Risk-Free Rate4.73%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
14.73%
Pre-Tax Cost of Debt18.64%
Tax Rate21.00%
Tax Shield3.91%
Capital Structure
Equity: 65.33%($34.27B)
Debt: 34.67%($18.18B)
Equity Component
5.85%
65.33% × 8.96%
Debt Component
5.10%
34.67% × 14.73%

M&T Bank Corp. (MTB) WACC in context

M&T Bank Corp. (MTB) currently screens with an estimated WACC of 10.96%. That blends a 8.96% cost of equity, a 18.64% pre-tax cost of debt, and a 65.33% 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 MTB WACC implies

A 10.96% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MTB

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 65.33% 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.