NETWORK18.NS WACC - Weighted Average Cost of Capital

The WACC of Network18 Media & Investments Ltd (NETWORK18.NS) is 12.8%.

The Cost of Equity of Network18 Media & Investments Ltd (NETWORK18.NS) is 15.90%.

The Cost of Debt of Network18 Media & Investments Ltd (NETWORK18.NS) is 6.45%.

	Range	Selected
Cost of equity	13.40% - 18.40%	15.90%
Tax rate	4.70% - 8.40%	6.55%
Cost of debt	5.90% - 7.00%	6.45%
WACC	11.0% - 14.7%	12.8%

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	0.78	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	18.40%

Tax rate	4.70%	8.40%
Debt/Equity ratio	0.45	0.45
Cost of debt	5.90%	7.00%

After-tax WACC	11.0%	14.7%


Selected WACC	12.8%

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 (15.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.