CTSH
Cognizant Technology Solutions Corp
Price:  
75.84 
USD
Volume:  
2,510,099.00
United States | IT Services
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Cognizant WACC - Weighted Average Cost of Capital

The WACC of Cognizant Technology Solutions Corp (CTSH) is 8.0%.

The Cost of Equity of Cognizant Technology Solutions Corp (CTSH) is 8.10%.
The Cost of Debt of Cognizant Technology Solutions Corp (CTSH) is 4.25%.

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%
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 0.67 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%