NETWORK18.NS WACC - Weighted Average Cost of Capital

The WACC of Network18 Media & Investments Ltd (NETWORK18.NS) is 11.4%.

The Cost of Equity of Network18 Media & Investments Ltd (NETWORK18.NS) is 15.80%.

The Cost of Debt of Network18 Media & Investments Ltd (NETWORK18.NS) is 6.85%.

	Range	Selected
Cost of equity	11.90% - 19.70%	15.80%
Tax rate	1.00% - 5.20%	3.10%
Cost of debt	6.70% - 7.00%	6.85%
WACC	9.4% - 13.5%	11.4%

WACC

NETWORK18.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	19.70%

Tax rate	1.00%	5.20%
Debt/Equity ratio	0.91	0.91
Cost of debt	6.70%	7.00%

After-tax WACC	9.4%	13.5%


Selected WACC	11.4%

NETWORK18.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 NETWORK18.NS:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.