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Smith-Midland Corporation Common Stock (SMID) — WACC Analysis

WACC Breakdown

Smith-Midland Corporation Common Stock (SMID) has a weighted average cost of capital (WACC) of 9.6%. The cost of equity is 9.4%, derived from a beta of 1.00 and a risk-free rate of 5.2%. The after-tax cost of debt is 40.4%. The capital structure is 99.4% equity and 0.6% debt.

Interpretation

A WACC of 9.6% is moderate, reflecting the market's balanced risk assessment of Smith-Midland Corporation Common Stock.

Investors can compare SMID's WACC of 9.6% 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

SMID WACC: 9.59% for Smith-Midland Corporation Common Stock

Current inputs imply a 9.42% cost of equity and a 51.12% 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

Smith-Midland Corporation Common Stock Common Stock (SMID) WACC Results
Weighted Average Cost of Capital
9.59%
Cost of Equity
9.42%
Risk-Free Rate5.19%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
40.38%
Pre-Tax Cost of Debt51.12%
Tax Rate21.00%
Tax Shield10.73%
Capital Structure
Equity: 99.45%($118.50M)
Debt: 0.55%($0.66M)
Equity Component
9.37%
99.45% × 9.42%
Debt Component
0.22%
0.55% × 40.38%

Smith-Midland Corporation Common Stock (SMID) WACC in context

Smith-Midland Corporation Common Stock (SMID) currently screens with an estimated WACC of 9.59%. That blends a 9.42% cost of equity, a 51.12% pre-tax cost of debt, and a 99.45% 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 SMID WACC implies

A 9.59% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SMID

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 99.45% 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.