CYBERMEDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Cyber Media India Ltd (CYBERMEDIA.NS) is 11.8%.

The Cost of Equity of Cyber Media India Ltd (CYBERMEDIA.NS) is 18.20%.

The Cost of Debt of Cyber Media India Ltd (CYBERMEDIA.NS) is 7.20%.

	Range	Selected
Cost of equity	16.80% - 19.60%	18.20%
Tax rate	32.20% - 39.00%	35.60%
Cost of debt	5.80% - 8.60%	7.20%
WACC	10.7% - 12.9%	11.8%

WACC

CYBERMEDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.19	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	19.60%

Tax rate	32.20%	39.00%
Debt/Equity ratio	0.88	0.88
Cost of debt	5.80%	8.60%

After-tax WACC	10.7%	12.9%


Selected WACC	11.8%

CYBERMEDIA.NS'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 CYBERMEDIA.NS:

cost_of_equity (18.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.19) + 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.