SYNA
Synaptics Inc
Price:  
58.76 
USD
Volume:  
447,843.00
United States | Semiconductors & Semiconductor Equipment
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SYNA WACC - Weighted Average Cost of Capital

The WACC of Synaptics Inc (SYNA) is 8.2%.

The Cost of Equity of Synaptics Inc (SYNA) is 10.00%.
The Cost of Debt of Synaptics Inc (SYNA) is 5.50%.

Range Selected
Cost of equity 8.60% - 11.40% 10.00%
Tax rate 25.40% - 32.30% 28.85%
Cost of debt 4.00% - 7.00% 5.50%
WACC 6.9% - 9.4% 8.2%
WACC

SYNA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.03 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 8.60% 11.40%
Tax rate 25.40% 32.30%
Debt/Equity ratio 0.43 0.43
Cost of debt 4.00% 7.00%
After-tax WACC 6.9% 9.4%
Selected WACC 8.2%

SYNA'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 SYNA:

cost_of_equity (10.00%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.03) + 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.