CYIENT.NS WACC - Weighted Average Cost of Capital

The WACC of Cyient Ltd (CYIENT.NS) is 18.0%.

The Cost of Equity of Cyient Ltd (CYIENT.NS) is 18.70%.

The Cost of Debt of Cyient Ltd (CYIENT.NS) is 8.95%.

	Range	Selected
Cost of equity	16.90% - 20.50%	18.70%
Tax rate	24.20% - 24.80%	24.50%
Cost of debt	7.60% - 10.30%	8.95%
WACC	16.3% - 19.8%	18.0%

WACC

CYIENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.21	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.90%	20.50%

Tax rate	24.20%	24.80%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.60%	10.30%

After-tax WACC	16.3%	19.8%


Selected WACC	18.0%

CYIENT.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 CYIENT.NS:

cost_of_equity (18.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.21) + 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.