VRNT
Verint Systems Inc
Price:  
17.93 
USD
Volume:  
418,589.00
United States | Software
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VRNT WACC - Weighted Average Cost of Capital

The WACC of Verint Systems Inc (VRNT) is 8.5%.

The Cost of Equity of Verint Systems Inc (VRNT) is 10.70%.
The Cost of Debt of Verint Systems Inc (VRNT) is 4.25%.

Range Selected
Cost of equity 9.10% - 12.30% 10.70%
Tax rate 27.80% - 45.40% 36.60%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.4% - 9.7% 8.5%
WACC

VRNT WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.13 1.34
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.10% 12.30%
Tax rate 27.80% 45.40%
Debt/Equity ratio 0.37 0.37
Cost of debt 4.00% 4.50%
After-tax WACC 7.4% 9.7%
Selected WACC 8.5%

VRNT'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 VRNT:

cost_of_equity (10.70%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.13) + 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.