509026.BO WACC - Weighted Average Cost of Capital

The WACC of VJTF Eduservices Ltd (509026.BO) is 15.0%.

The Cost of Equity of VJTF Eduservices Ltd (509026.BO) is 19.10%.

The Cost of Debt of VJTF Eduservices Ltd (509026.BO) is 6.85%.

	Range	Selected
Cost of equity	16.80% - 21.40%	19.10%
Tax rate	17.70% - 30.90%	24.30%
Cost of debt	5.80% - 7.90%	6.85%
WACC	13.3% - 16.8%	15.0%

WACC

509026.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.19	1.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	21.40%

Tax rate	17.70%	30.90%
Debt/Equity ratio	0.41	0.41
Cost of debt	5.80%	7.90%

After-tax WACC	13.3%	16.8%


Selected WACC	15.0%

509026.BO'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 509026.BO:

cost_of_equity (19.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.19) + 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.