CDNS
Cadence Design Systems Inc
Price:  
294.69 
USD
Volume:  
1,873,431.00
United States | Software
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CDNS WACC - Weighted Average Cost of Capital

The WACC of Cadence Design Systems Inc (CDNS) is 8.8%.

The Cost of Equity of Cadence Design Systems Inc (CDNS) is 8.90%.
The Cost of Debt of Cadence Design Systems Inc (CDNS) is 4.95%.

Range Selected
Cost of equity 7.50% - 10.30% 8.90%
Tax rate 15.00% - 18.80% 16.90%
Cost of debt 4.60% - 5.30% 4.95%
WACC 7.4% - 10.2% 8.8%
WACC

CDNS WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.78 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 10.30%
Tax rate 15.00% 18.80%
Debt/Equity ratio 0.01 0.01
Cost of debt 4.60% 5.30%
After-tax WACC 7.4% 10.2%
Selected WACC 8.8%