NAVNETEDUL.NS
Navneet Education Ltd
Price:  
143.15 
INR
Volume:  
58,004.00
India | Media
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NAVNETEDUL.NS WACC - Weighted Average Cost of Capital

The WACC of Navneet Education Ltd (NAVNETEDUL.NS) is 17.3%.

The Cost of Equity of Navneet Education Ltd (NAVNETEDUL.NS) is 18.20%.
The Cost of Debt of Navneet Education Ltd (NAVNETEDUL.NS) is 7.95%.

Range Selected
Cost of equity 15.70% - 20.70% 18.20%
Tax rate 24.80% - 33.70% 29.25%
Cost of debt 7.50% - 8.40% 7.95%
WACC 14.9% - 19.6% 17.3%
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 1.06 1.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.70% 20.70%
Tax rate 24.80% 33.70%
Debt/Equity ratio 0.08 0.08
Cost of debt 7.50% 8.40%
After-tax WACC 14.9% 19.6%
Selected WACC 17.3%

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 (18.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.