MYE
Myers Industries Inc
Price:  
16.74 
USD
Volume:  
178,357.00
United States | Containers & Packaging
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MYE WACC - Weighted Average Cost of Capital

The WACC of Myers Industries Inc (MYE) is 8.7%.

The Cost of Equity of Myers Industries Inc (MYE) is 8.70%.
The Cost of Debt of Myers Industries Inc (MYE) is 11.60%.

Range Selected
Cost of equity 7.50% - 9.90% 8.70%
Tax rate 25.30% - 25.80% 25.55%
Cost of debt 7.50% - 15.70% 11.60%
WACC 6.8% - 10.5% 8.7%
WACC

MYE WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.8 0.89
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 9.90%
Tax rate 25.30% 25.80%
Debt/Equity ratio 0.61 0.61
Cost of debt 7.50% 15.70%
After-tax WACC 6.8% 10.5%
Selected WACC 8.7%

MYE'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 MYE:

cost_of_equity (8.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.8) + 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.