CYRN WACC - Weighted Average Cost of Capital
The WACC of Cyren Ltd (CYRN) is 6.3%.
| Range | Selected | |
| Cost of equity | 6.3% - 10.1% | 8.2% |
| Tax rate | 0.6% - 0.6% | 0.6% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 4.7% - 7.9% | 6.3% |
| Category | Low | High |
| Long-term bond rate | 4.2% | 4.7% |
| Equity market risk premium | 5.0% | 6.0% |
| Adjusted beta | 0.43 | 0.82 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.3% | 10.1% |
| Tax rate | 0.6% | 0.6% |
| Debt/Equity ratio | 2.16 | 2.16 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 4.7% | 7.9% |
| Selected WACC | 6.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CYRN | Cyren Ltd | 2.16 | 0.72 | 0.23 |
| ABST.TO | Absolute Software Corp | 0.47 | 0.34 | 0.23 |
| CNWT | Cistera Networks Inc | 0.29 | 0 | 0 |
| GAEX | GA Express Inc | 336917.56 | 260.22 | 0 |
| NXJ.TO | Nexj Systems Inc | 0.11 | 0.4 | 0.36 |
| QIS.V | Quorum Information Technologies Inc | 0.11 | -0.08 | -0.07 |
| RDAR | RAADR Inc | 0.64 | 5.14 | 3.14 |
| ROI.V | Route1 Inc | 1.21 | 2.72 | 1.23 |
| SSNT | SilverSun Technologies Inc | 0.02 | -0.01 | -0.01 |
| TLS | Telos Corp | 0.05 | 3 | 2.85 |
| Low | High | |
| Unlevered beta | 0.14 | 0.28 |
| Relevered beta | 0.15 | 0.73 |
| Adjusted relevered beta | 0.43 | 0.82 |
CYRN'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 CYRN:
cost_of_equity (8.20%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.43) + 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.