CTSH
Cognizant Technology Solutions Corp
Price:  
68.32 
USD
Volume:  
1,860,102.00
United States | IT Services
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Cognizant WACC - Weighted Average Cost of Capital

The WACC of Cognizant Technology Solutions Corp (CTSH) is 8.5%.

The Cost of Equity of Cognizant Technology Solutions Corp (CTSH) is 8.60%.
The Cost of Debt of Cognizant Technology Solutions Corp (CTSH) is 4.30%.

Range Selected
Cost of equity 7.40% - 9.80% 8.60%
Tax rate 24.40% - 24.80% 24.60%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.3% - 9.7% 8.5%
WACC

Cognizant WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.76 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.80%
Tax rate 24.40% 24.80%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.60%
After-tax WACC 7.3% 9.7%
Selected WACC 8.5%