NETWORK18.NS WACC - Weighted Average Cost of Capital

The WACC of Network18 Media & Investments Ltd (NETWORK18.NS) is 13.1%.

The Cost of Equity of Network18 Media & Investments Ltd (NETWORK18.NS) is 15.55%.

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

	Range	Selected
Cost of equity	13.20% - 17.90%	15.55%
Tax rate	4.70% - 8.40%	6.55%
Cost of debt	5.90% - 7.00%	6.45%
WACC	11.2% - 14.9%	13.1%

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	0.76	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	17.90%

Tax rate	4.70%	8.40%
Debt/Equity ratio	0.35	0.35
Cost of debt	5.90%	7.00%

After-tax WACC	11.2%	14.9%


Selected WACC	13.1%

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 (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.