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Vulcan Materials Company(Holding Company) (VMC) — WACC Analysis

WACC Breakdown

Vulcan Materials Company(Holding Company) (VMC) has a weighted average cost of capital (WACC) of 8.6%. The cost of equity is 9.2%, derived from a beta of 0.92 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.1%. The capital structure is 87.8% equity and 12.2% debt.

Interpretation

A WACC of 8.6% is moderate, reflecting the market's balanced risk assessment of Vulcan Materials Company(Holding Company).

Investors can compare VMC's WACC of 8.6% against industry peers to gauge its relative financing costs. A beta of 0.92 reflects the stock's volatility relative to the broader market.

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VALUATION

VMC WACC: 8.57% for Vulcan Materials Company(Holding Company)

Current inputs imply a 9.19% cost of equity and a 5.13% 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

Vulcan Materials Company(Holding Company) Common Stock (VMC) WACC Results
Weighted Average Cost of Capital
8.57%
Cost of Equity
9.19%
Risk-Free Rate5.19%
Beta0.92
Market Risk Premium4.23%
Cost of Debt
4.05%
Pre-Tax Cost of Debt5.13%
Tax Rate21.00%
Tax Shield1.08%
Capital Structure
Equity: 87.76%($32.71B)
Debt: 12.24%($4560.00M)
Equity Component
8.07%
87.76% × 9.19%
Debt Component
0.50%
12.24% × 4.05%

Vulcan Materials Company(Holding Company) (VMC) WACC in context

Vulcan Materials Company(Holding Company) (VMC) currently screens with an estimated WACC of 8.57%. That blends a 9.19% cost of equity, a 5.13% pre-tax cost of debt, and a 87.76% 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 VMC WACC implies

A 8.57% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates VMC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.92 and equity accounts for 87.76% 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.