Estimate a firm's blended cost of capital using CAPM for equity and a synthetic-rating cost of debt.
WACC
9.1%
Blended discount rate under current assumptions.
Industry Compare
9.3%
Software (System & Application) (309 firms)
Cost of Equity
?
The return owners or shareholders require for taking equity risk.
9.3%
Weight 97.3%
After-Tax Cost of Debt
?
The borrowing rate the business pays on debt, often adjusted for the tax benefit of interest.
3.3%
Weight 2.7%
Implied Rating
Aaa/AAA
Default spread 0.4%
Industry Compare Software (System & Application): 9.3% (309 firms)
Sensitivity — β vs D/V
| β \ D/V | 0% | 10% | 20% | 30% | 50% |
|---|---|---|---|---|---|
| 0.90 | 7.96% | 7.49% | 7.02% | 6.55% | 5.61% |
| 1.05 | 8.63% | 8.10% | 7.56% | 7.02% | 5.95% |
| 1.20 | 9.30% | 8.70% | 8.09% | 7.49% | 6.28% |
| 1.35 | 9.97% | 9.30% | 8.63% | 7.96% | 6.62% |
| 1.50 | 10.64% | 9.90% | 9.16% | 8.43% | 6.95% |
Industry averages computed from publicly-listed US firms. Data vintage: January 2026. Refreshed annually.
Data view