Castlight Health Inc (CSLT) WACC Analysis

As of May 27, 2025, Castlight Health Inc (CSLT) carries a Weighted Average Cost of Capital (WACC) of 6.4%. WACC reflects the blended rate Castlight Health Inc must pay to both equity and debt holders.

Within that, the cost of equity is 6.5%, the cost of debt is 7.0%, and the effective tax rate is 27.0%.

Breakdown of WACC Components

• Long-term bond rate: 3.2% – 3.7%
• Equity market risk premium: 4.2% – 5.2%
• Adjusted beta: 0.78 – 0.91
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 6.4%, Castlight Health Inc must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.