SNCR
Synchronoss Technologies Inc
Price:  
6.39 
USD
Volume:  
114,901.00
United States | Software
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SNCR WACC - Weighted Average Cost of Capital

The WACC of Synchronoss Technologies Inc (SNCR) is 8.0%.

The Cost of Equity of Synchronoss Technologies Inc (SNCR) is 7.80%.
The Cost of Debt of Synchronoss Technologies Inc (SNCR) is 12.75%.

Range Selected
Cost of equity 6.00% - 9.60% 7.80%
Tax rate 28.80% - 41.40% 35.10%
Cost of debt 9.10% - 16.40% 12.75%
WACC 6.3% - 9.6% 8.0%
WACC

SNCR WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.46 0.85
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 9.60%
Tax rate 28.80% 41.40%
Debt/Equity ratio 2.56 2.56
Cost of debt 9.10% 16.40%
After-tax WACC 6.3% 9.6%
Selected WACC 8.0%

SNCR'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 SNCR:

cost_of_equity (7.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.46) + 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.