MTEDUCARE.NS WACC - Weighted Average Cost of Capital

The WACC of MT Educare Ltd (MTEDUCARE.NS) is 12.0%.

The Cost of Equity of MT Educare Ltd (MTEDUCARE.NS) is 20.35%.

The Cost of Debt of MT Educare Ltd (MTEDUCARE.NS) is 15.45%.

	Range	Selected
Cost of equity	14.90% - 25.80%	20.35%
Tax rate	9.00% - 29.00%	19.00%
Cost of debt	4.00% - 26.90%	15.45%
WACC	4.5% - 19.6%	12.0%

WACC

MTEDUCARE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	25.80%

Tax rate	9.00%	29.00%
Debt/Equity ratio	12.23	12.23
Cost of debt	4.00%	26.90%

After-tax WACC	4.5%	19.6%


Selected WACC	12.0%

MTEDUCARE.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 MTEDUCARE.NS:

cost_of_equity (20.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.