Question 1

What is Martin Midstream Partners LP's WACC?

Accepted Answer

Martin Midstream Partners LP (MMLP) has a Weighted Average Cost of Capital (WACC) of 11.97%. This is calculated using a Cost of Equity of 8.85% (via CAPM with a beta of 1.00) and a pre-tax Cost of Debt of 12.57%, with an equity weight of 16.23% in the capital structure.

Question 2

Is Martin Midstream Partners LP's WACC high or low?

Accepted Answer

Martin Midstream Partners LP's WACC of 11.97% falls within the typical 8-12% range for mid-cap growth companies. 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 Midstream Partners LP's WACC calculated?

Accepted Answer

Martin Midstream Partners LP's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 8.85% is derived from the CAPM model using a beta of 1.00. The pre-tax Cost of Debt (Rd) is 12.57%. The capital structure is 16.23% equity and 83.77% debt.

Martin Midstream Partners LP (MMLP) — WACC 分析

WACC 构成

解读

Martin Midstream Partners LP（MMLP）WACC：11.97%

WACC计算器

Martin Midstream Partners LP（MMLP） WACC 解读

MMLP 公司分析

MMLP DCF 估值

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