CLEDUCATE.NS WACC - Weighted Average Cost of Capital

The WACC of CL Educate Ltd (CLEDUCATE.NS) is 12.8%.

The Cost of Equity of CL Educate Ltd (CLEDUCATE.NS) is 12.80%.

The Cost of Debt of CL Educate Ltd (CLEDUCATE.NS) is 16.95%.

	Range	Selected
Cost of equity	10.20% - 15.40%	12.80%
Tax rate	20.10% - 23.20%	21.65%
Cost of debt	15.30% - 18.60%	16.95%
WACC	10.3% - 15.4%	12.8%

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	0.4	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	15.40%

Tax rate	20.10%	23.20%
Debt/Equity ratio	0.06	0.06
Cost of debt	15.30%	18.60%

After-tax WACC	10.3%	15.4%


Selected WACC	12.8%

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 (12.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.