CYIENT.NS
Cyient Ltd
Price:  
1,296.4 
INR
Volume:  
154,925
India | Software

CYIENT.NS WACC - Weighted Average Cost of Capital

The WACC of Cyient Ltd (CYIENT.NS) is 17.7%.

The Cost of Equity of Cyient Ltd (CYIENT.NS) is 18.35%.
The Cost of Debt of Cyient Ltd (CYIENT.NS) is 8.95%.

RangeSelected
Cost of equity16.4% - 20.3%18.35%
Tax rate24.2% - 24.8%24.5%
Cost of debt7.6% - 10.3%8.95%
WACC15.9% - 19.6%17.7%
WACC

CYIENT.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.151.33
Additional risk adjustments0.0%0.5%
Cost of equity16.4%20.3%
Tax rate24.2%24.8%
Debt/Equity ratio
0.060.06
Cost of debt7.6%10.3%
After-tax WACC15.9%19.6%
Selected WACC17.7%

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 (18.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.15) + 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.