VRNT
Verint Systems Inc
Price:  
20.56 
USD
Volume:  
1,126,297
United States | Software

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 10.45%.
The Cost of Debt of Verint Systems Inc (VRNT) is 4.25%.

RangeSelected
Cost of equity9.0% - 11.9%10.45%
Tax rate27.8% - 45.4%36.6%
Cost of debt4.0% - 4.5%4.25%
WACC7.5% - 9.6%8.5%
WACC

VRNT WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta1.121.26
Additional risk adjustments0.0%0.5%
Cost of equity9.0%11.9%
Tax rate27.8%45.4%
Debt/Equity ratio
0.330.33
Cost of debt4.0%4.5%
After-tax WACC7.5%9.6%
Selected WACC8.5%

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 (10.45%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.12) + 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.