NAVNETEDUL.NS WACC - Weighted Average Cost of Capital

The WACC of Navneet Education Ltd (NAVNETEDUL.NS) is 16.7%.

The Cost of Equity of Navneet Education Ltd (NAVNETEDUL.NS) is 17.40%.

The Cost of Debt of Navneet Education Ltd (NAVNETEDUL.NS) is 6.85%.

	Range	Selected
Cost of equity	15.60% - 19.20%	17.40%
Tax rate	24.80% - 33.70%	29.25%
Cost of debt	6.20% - 7.50%	6.85%
WACC	15.0% - 18.4%	16.7%

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	1.05	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	19.20%

Tax rate	24.80%	33.70%
Debt/Equity ratio	0.06	0.06
Cost of debt	6.20%	7.50%

After-tax WACC	15.0%	18.4%


Selected WACC	16.7%

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 (17.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.05) + 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.