SSNC
SS&C Technologies Holdings Inc
Price:  
78.10 
USD
Volume:  
1,588,029.00
United States | Software
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SSNC WACC - Weighted Average Cost of Capital

The WACC of SS&C Technologies Holdings Inc (SSNC) is 7.5%.

The Cost of Equity of SS&C Technologies Holdings Inc (SSNC) is 8.50%.
The Cost of Debt of SS&C Technologies Holdings Inc (SSNC) is 6.15%.

Range Selected
Cost of equity 7.30% - 9.70% 8.50%
Tax rate 21.40% - 24.00% 22.70%
Cost of debt 5.30% - 7.00% 6.15%
WACC 6.4% - 8.5% 7.5%
WACC

SSNC WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.74 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.30% 9.70%
Tax rate 21.40% 24.00%
Debt/Equity ratio 0.37 0.37
Cost of debt 5.30% 7.00%
After-tax WACC 6.4% 8.5%
Selected WACC 7.5%

SSNC'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 SSNC:

cost_of_equity (8.50%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.74) + 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.