Murphy USAMUSA +0.35%83 WACC % is 3.73% as of Jul. 04, 2026, which is 42% below its 10-year median of 6.43. GuruFocus rates MUSA with a GF Score™ of 83/100 and a GF Value™ of $458.49 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,137 Retail - Cyclical companies, Murphy USA ranks better than 73.18% on this metric.
As of today (2026-07-04), Murphy USA's weighted average cost of capital is 3.73%%. Murphy USA's ROIC % is 16.63% (calculated using TTM income statement data).
Murphy USA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
Murphy USA (NYSE:MUSA) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Murphy USA's weighted average cost of capital is 3.73%%. Murphy USA's ROIC % is 16.63% (calculated using TTM income statement data).
Murphy USA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Murphy USA WACC % Historical Data
* Premium members only.
The historical data trend for Murphy USA's WACC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, Murphy USA's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Murphy USA WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Murphy USA's WACC % distribution charts can be found below:
* The bar in red indicates where Murphy USA's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Murphy USA's market capitalization (E) is $10357.437 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Murphy USA's latest one-year quarterly average Book Value of Debt (D) is $2651.88 Mil.
a) weight of equity = E / (E + D) = 10357.437 / (10357.437 + 2651.88) = 0.7962
b) weight of debt = D / (E + D) = 2651.88 / (10357.437 + 2651.88) = 0.2038
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.485%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Murphy USA's beta is -0.1085.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.485% + -0.1085 * 6% = 3.834%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Murphy USA's interest expense (positive number) was $114.5 Mil. Its total Book Value of Debt (D) is $2651.88 Mil.
Cost of Debt = 114.5 / 2651.88 = 4.3177%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 169.8 / 723.5 = 23.47%.
Murphy USA's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.7962
*
3.834%
+
0.2038
*
4.3177%
*
(1 - 23.47%)
=
3.73%
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Murphy USA (MUSA) has a WACC % of 3.73% as of Jul. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Murphy USA and its competitors. This is 42% below median its historical median of 6.43. Over the past decade, Murphy USA's WACC % has ranged from 4.49 to 7.46. According to the industry distribution chart, Murphy USA ranks #305 out of 1137 companies in the Retail - Cyclical industry, placing it in the top 26.8%.
Is Murphy USA's WACC % too high?
Murphy USA's current WACC % of 3.73% is 42% below median its 10-year median of 6.43. Over the past 10 years, this metric has ranged from a low of 4.49 to a high of 7.46. The Retail - Cyclical industry median WACC % is 7.56. Murphy USA's value of 3.73% is 50.7% below this industry median. Based on the distribution chart, Murphy USA ranks #305 out of 1137 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Murphy USA has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Murphy USA's WACC % compare to GME and FIVE?
According to the Retail - Cyclical industry distribution chart, Murphy USA ranks #305 out of 1137 companies for WACC %. This puts Murphy USA in the upper half of its industry. The industry median WACC % is 7.56. Murphy USA's value of 3.73% is 50.7% below this benchmark. Historically, Murphy USA's own WACC % has ranged from 4.49 to 7.46 over the past decade. While the company's 10-year median is 6.43 vs. the industry median of 7.56, Murphy USA has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.56, based on 1,137 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Murphy USA's current WACC % of 3.73% is 50.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Murphy USA and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Murphy USA's current WACC % is 3.73%, which is 42% below median its own 10-year median of 6.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Murphy USA stock overvalued right now?
Based on GuruFocus' analysis, Murphy USA (MUSA) is currently considered Modestly Overvalued. The stock's GF Value™ is $458.49, compared to a current price of $560.75 — trading 22.3% above its estimated fair value. The current WACC % is 3.73%, which is 42% below median its 10-year median of 6.43 and 50.7% below the Retail - Cyclical industry median of 7.56. Murphy USA's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Murphy USA (MUSA), the current WACC % is 3.73% as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Murphy USA (MUSA) Overvalued in 2026?
Based on GuruFocus' analysis, Murphy USA stock appears to be overvalued.
The current stock price of $560.75 is trading 22.3% above its estimated GF Value™ of $458.49.
GuruFocus considers Murphy USA to be Modestly Overvalued.
Key valuation signals for MUSA:
WACC %: 3.73% (42% below median its 10-year median of 6.43)
GF Value™: $458.49 vs. price of $560.75 (22.3% above fair value)
Industry Position: 50.7% below the Retail - Cyclical median (#305 of 1137)
No single metric tells the full story. See the MUSA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Murphy USA Inc is mainly engaged in the marketing of retail motor fuel products and convenience merchandise through a network of several retail stores in the Southwest, Southeast, Midwest, and Northeast United States. The majority of Murphy USA's stores are located in proximity to Walmart Supercenters, but it also operates standalone stores that market gasoline and other products under the Murphy USA, Murphy Express, and QuickChek brands. In addition, the company also markets fuel to unbranded wholesale customers through a mixture of company-owned and third-party product distribution terminals and pipeline positions. The firm generates maximum revenue through retail sales of petroleum products, and the rest from merchandise sales and wholesale of petroleum products.
83GF Score
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