Question 1

What is Martin Marietta Materials's WACC?

Accepted Answer

Martin Marietta Materials (MLM) has a Weighted Average Cost of Capital (WACC) of 7.95%. This is calculated using a Cost of Equity of 8.64% (via CAPM with a beta of 0.98) and a pre-tax Cost of Debt of 4.34%, with an equity weight of 86.62% in the capital structure.

Question 2

Is Martin Marietta Materials's WACC high or low?

Accepted Answer

Martin Marietta Materials's WACC of 7.95% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is Martin Marietta Materials's WACC calculated?

Accepted Answer

Martin Marietta Materials's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.64% is derived from the CAPM model using a beta of 0.98. The pre-tax Cost of Debt (Rd) is 4.34%. The capital structure is 86.62% equity and 13.38% debt.

Martin Marietta Materials (MLM) — WACC 分析

WACC 构成

解读

Martin Marietta Materials（MLM）WACC：7.95%

WACC计算器

Martin Marietta Materials（MLM） WACC 解读

MLM 公司分析

MLM DCF 估值

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