CYAN.L
Cyanconnode Holdings PLC
Price:  
7.75 
GBP
Volume:  
1,036,977.00
United Kingdom | Semiconductors & Semiconductor Equipment
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CYAN.L WACC - Weighted Average Cost of Capital

The WACC of Cyanconnode Holdings PLC (CYAN.L) is 7.9%.

The Cost of Equity of Cyanconnode Holdings PLC (CYAN.L) is 7.95%.
The Cost of Debt of Cyanconnode Holdings PLC (CYAN.L) is 7.25%.

Range Selected
Cost of equity 6.70% - 9.20% 7.95%
Tax rate 18.60% - 25.30% 21.95%
Cost of debt 7.00% - 7.50% 7.25%
WACC 6.6% - 9.1% 7.9%
WACC

CYAN.L WACC calculation

Category Low High
Long-term bond rate 4.0% 4.5%
Equity market risk premium 6.0% 7.0%
Adjusted beta 0.45 0.6
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.70% 9.20%
Tax rate 18.60% 25.30%
Debt/Equity ratio 0.02 0.02
Cost of debt 7.00% 7.50%
After-tax WACC 6.6% 9.1%
Selected WACC 7.9%

CYAN.L's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for CYAN.L:

cost_of_equity (7.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.45) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.