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Micron Technology, Inc. (MU) — WACC Analysis

WACC Breakdown

Micron Technology, Inc. (MU) has a weighted average cost of capital (WACC) of 11.4%. The cost of equity is 11.4%, derived from a beta of 1.87 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.2%. The capital structure is 99.5% equity and 0.5% debt.

Interpretation

A WACC of 11.4% is moderate, reflecting the market's balanced risk assessment of Micron Technology, Inc..

Investors can compare MU's WACC of 11.4% against industry peers to gauge its relative financing costs. A beta of 1.87 reflects the stock's volatility relative to the broader market.

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VALUATION

MU WACC: 11.37% for Micron Technology, Inc.

Current inputs imply a 11.41% cost of equity and a 4.02% 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

Micron Technology, Inc. Common Stock (MU) WACC Results
Weighted Average Cost of Capital
11.37%
Cost of Equity
11.41%
Risk-Free Rate4.73%
Beta1.87
Market Risk Premium4.23%
Cost of Debt
3.18%
Pre-Tax Cost of Debt4.02%
Tax Rate21.00%
Tax Shield0.84%
Capital Structure
Equity: 99.46%($1053.57B)
Debt: 0.54%($5722.00M)
Equity Component
11.35%
99.46% × 11.41%
Debt Component
0.02%
0.54% × 3.18%

Micron Technology, Inc. (MU) WACC in context

Micron Technology, Inc. (MU) currently screens with an estimated WACC of 11.37%. That blends a 11.41% cost of equity, a 4.02% pre-tax cost of debt, and a 99.46% 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 MU WACC implies

A 11.37% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.87 and equity accounts for 99.46% 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.