The WACC of Cognizant Technology Solutions Corp (CTSH) is 8.0%.
Range | Selected | |
Cost of equity | 7.00% - 9.20% | 8.10% |
Tax rate | 24.40% - 24.80% | 24.60% |
Cost of debt | 4.00% - 4.50% | 4.25% |
WACC | 6.9% - 9.1% | 8.0% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 0.67 | 0.77 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.00% | 9.20% |
Tax rate | 24.40% | 24.80% |
Debt/Equity ratio | 0.02 | 0.02 |
Cost of debt | 4.00% | 4.50% |
After-tax WACC | 6.9% | 9.1% |
Selected WACC | 8.0% | |