NAVNETEDUL.NS WACC - Weighted Average Cost of Capital

The WACC of Navneet Education Ltd (NAVNETEDUL.NS) is 15.0%.

The Cost of Equity of Navneet Education Ltd (NAVNETEDUL.NS) is 15.85%.

The Cost of Debt of Navneet Education Ltd (NAVNETEDUL.NS) is 6.50%.

	Range	Selected
Cost of equity	14.10% - 17.60%	15.85%
Tax rate	29.90% - 33.70%	31.80%
Cost of debt	5.50% - 7.50%	6.50%
WACC	13.3% - 16.7%	15.0%

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	0.87	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	17.60%

Tax rate	29.90%	33.70%
Debt/Equity ratio	0.08	0.08
Cost of debt	5.50%	7.50%

After-tax WACC	13.3%	16.7%


Selected WACC	15.0%

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 (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.