CLEDUCATE.NS WACC - Weighted Average Cost of Capital

The WACC of CL Educate Ltd (CLEDUCATE.NS) is 11.7%.

The Cost of Equity of CL Educate Ltd (CLEDUCATE.NS) is 12.05%.

The Cost of Debt of CL Educate Ltd (CLEDUCATE.NS) is 7.80%.

	Range	Selected
Cost of equity	10.30% - 13.80%	12.05%
Tax rate	17.40% - 20.00%	18.70%
Cost of debt	7.80% - 7.80%	7.80%
WACC	10.0% - 13.3%	11.7%

WACC

CLEDUCATE.NS 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	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.80%

Tax rate	17.40%	20.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.80%	7.80%

After-tax WACC	10.0%	13.3%


Selected WACC	11.7%

CLEDUCATE.NS'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 CLEDUCATE.NS:

cost_of_equity (12.05%) = 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.