CYBERMEDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Cyber Media India Ltd (CYBERMEDIA.NS) is 13.5%.

The Cost of Equity of Cyber Media India Ltd (CYBERMEDIA.NS) is 15.10%.

The Cost of Debt of Cyber Media India Ltd (CYBERMEDIA.NS) is 15.95%.

	Range	Selected
Cost of equity	12.30% - 17.90%	15.10%
Tax rate	32.20% - 39.00%	35.60%
Cost of debt	8.00% - 23.90%	15.95%
WACC	10.1% - 16.8%	13.5%

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	0.66	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	17.90%

Tax rate	32.20%	39.00%
Debt/Equity ratio	0.46	0.46
Cost of debt	8.00%	23.90%

After-tax WACC	10.1%	16.8%


Selected WACC	13.5%

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 (15.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.