MTEDUCARE.NS WACC - Weighted Average Cost of Capital

The WACC of MT Educare Ltd (MTEDUCARE.NS) is 7.3%.

The Cost of Equity of MT Educare Ltd (MTEDUCARE.NS) is 28.85%.

The Cost of Debt of MT Educare Ltd (MTEDUCARE.NS) is 5.50%.

	Range	Selected
Cost of equity	17.30% - 40.40%	28.85%
Tax rate	9.00% - 14.30%	11.65%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.1% - 9.6%	7.3%

WACC

MTEDUCARE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.26	3.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.30%	40.40%

Tax rate	9.00%	14.30%
Debt/Equity ratio	8.66	8.66
Cost of debt	4.00%	7.00%

After-tax WACC	5.1%	9.6%


Selected WACC	7.3%

MTEDUCARE.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 MTEDUCARE.NS:

cost_of_equity (28.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.26) + 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.