MTX
Minerals Technologies Inc
Price:  
59.38 
USD
Volume:  
287,509.00
United States | Chemicals
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MTX WACC - Weighted Average Cost of Capital

The WACC of Minerals Technologies Inc (MTX) is 8.3%.

The Cost of Equity of Minerals Technologies Inc (MTX) is 10.35%.
The Cost of Debt of Minerals Technologies Inc (MTX) is 5.35%.

Range Selected
Cost of equity 9.20% - 11.50% 10.35%
Tax rate 19.50% - 21.10% 20.30%
Cost of debt 5.30% - 5.40% 5.35%
WACC 7.5% - 9.0% 8.3%
WACC

MTX WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.16 1.19
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 11.50%
Tax rate 19.50% 21.10%
Debt/Equity ratio 0.52 0.52
Cost of debt 5.30% 5.40%
After-tax WACC 7.5% 9.0%
Selected WACC 8.3%

MTX's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for MTX:

cost_of_equity (10.35%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.16) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.