NAVNETEDUL.NS WACC - Weighted Average Cost of Capital

The WACC of Navneet Education Ltd (NAVNETEDUL.NS) is 16.2%.

The Cost of Equity of Navneet Education Ltd (NAVNETEDUL.NS) is 16.95%.

The Cost of Debt of Navneet Education Ltd (NAVNETEDUL.NS) is 7.95%.

	Range	Selected
Cost of equity	15.00% - 18.90%	16.95%
Tax rate	24.80% - 33.70%	29.25%
Cost of debt	7.50% - 8.40%	7.95%
WACC	14.4% - 18.0%	16.2%

WACC

NAVNETEDUL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.98	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	18.90%

Tax rate	24.80%	33.70%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.50%	8.40%

After-tax WACC	14.4%	18.0%


Selected WACC	16.2%

NAVNETEDUL.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 NAVNETEDUL.NS:

cost_of_equity (16.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.