CYAN.L WACC - Weighted Average Cost of Capital
The WACC of Cyanconnode Holdings PLC (CYAN.L) is 7.6%.
| Range | Selected | |
| Cost of equity | 6.2% - 9.1% | 7.65% |
| Tax rate | 18.6% - 25.3% | 21.95% |
| Cost of debt | 7.0% - 7.5% | 7.25% |
| WACC | 6.2% - 9.0% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.37 | 0.59 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.2% | 9.1% |
| Tax rate | 18.6% | 25.3% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.0% | 7.5% |
| After-tax WACC | 6.2% | 9.0% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CYAN.L | Cyanconnode Holdings PLC | 0.02 | 0.61 | 0.6 |
| ALTRO.PA | TronicS Microsystems SA | 0.19 | -1.05 | -0.91 |
| CML.L | CML Microsystems Plc | 0.02 | 0.02 | 0.02 |
| EEMS.MI | EEMS Italia SpA | 0.14 | 0.25 | 0.23 |
| MEMS.PA | Memscap SA | 0.16 | 1.69 | 1.5 |
| NANO.L | Nanoco Group PLC | 0.1 | 1.29 | 1.2 |
| P4O.DE | Plan Optik AG | 0.12 | 0.68 | 0.62 |
| SIS.DE | First Sensor AG | 0.01 | -0.13 | -0.12 |
| VALOE.HE | Valoe Oyj | 5.83 | 0.42 | 0.08 |
| WIHN.SW | Wisekey International Holding AG | 0.11 | -0.08 | -0.07 |
| Low | High | |
| Unlevered beta | 0.05 | 0.38 |
| Relevered beta | 0.06 | 0.39 |
| Adjusted relevered beta | 0.37 | 0.59 |
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 (7.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (0.37) + 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.