Micron Technology Inc (MU) WACC Analysis

As of May 23, 2025, Micron Technology Inc (MU) carries a Weighted Average Cost of Capital (WACC) of 9.6%. WACC reflects the blended rate Micron Technology Inc must pay to both equity and debt holders.

Within that, the cost of equity is 8.7%, the cost of debt is 4.0%, and the effective tax rate is 8.1%.

Breakdown of WACC Components

• Long-term bond rate: 3.9% – 4.4%
• Equity market risk premium: 4.6% – 5.6%
• Adjusted beta: 1.06 – 1.24
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 0.12

What It Means for Investors

With a selected WACC of 9.6%, Micron Technology Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.