534659.BO
JOINTECA Education Solutions Ltd
Price:  
4.58 
INR
Volume:  
8,000.00
India | Software
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534659.BO WACC - Weighted Average Cost of Capital

The WACC of JOINTECA Education Solutions Ltd (534659.BO) is 10.2%.

The Cost of Equity of JOINTECA Education Solutions Ltd (534659.BO) is 11.50%.
The Cost of Debt of JOINTECA Education Solutions Ltd (534659.BO) is 5.00%.

Range Selected
Cost of equity 10.30% - 12.70% 11.50%
Tax rate 5.10% - 8.80% 6.95%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.2% - 11.1% 10.2%
WACC

534659.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.41 0.52
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.30% 12.70%
Tax rate 5.10% 8.80%
Debt/Equity ratio 0.25 0.25
Cost of debt 5.00% 5.00%
After-tax WACC 9.2% 11.1%
Selected WACC 10.2%

534659.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 534659.BO:

cost_of_equity (11.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.