CTSH
Cognizant Technology Solutions Corp
Price:  
74.57 
USD
Volume:  
5,125,564.00
United States | IT Services
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Cognizant WACC - Weighted Average Cost of Capital

The WACC of Cognizant Technology Solutions Corp (CTSH) is 8.4%.

The Cost of Equity of Cognizant Technology Solutions Corp (CTSH) is 8.50%.
The Cost of Debt of Cognizant Technology Solutions Corp (CTSH) is 4.30%.

Range Selected
Cost of equity 7.30% - 9.70% 8.50%
Tax rate 24.40% - 24.80% 24.60%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.2% - 9.6% 8.4%
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 0.74 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.70%
Tax rate 24.40% 24.80%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.60%
After-tax WACC 7.2% 9.6%
Selected WACC 8.4%