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As of today (2026-08-02), Shanti Educational Initiatives's weighted average cost of capital is 16.43%%. Shanti Educational Initiatives's ROIC % is 4.14% (calculated using TTM income statement data).
Shanti Educational Initiatives earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Shanti Educational Initiatives's weighted average cost of capital is 16.43%%. Shanti Educational Initiatives's ROIC % is 4.14% (calculated using TTM income statement data).
Shanti Educational Initiatives earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Shanti Educational Initiatives WACC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Education & Training Services subindustry, Shanti Educational Initiatives's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Shanti Educational Initiatives WACC % vs Education Industry
For the Education industry and Consumer Defensive sector, Shanti Educational Initiatives's WACC % distribution charts can be found below:
* The bar in red indicates where Shanti Educational Initiatives's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Shanti Educational Initiatives's market capitalization (E) is ₹33069.400 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Shanti Educational Initiatives's latest one-year quarterly average Book Value of Debt (D) is ₹68.664 Mil.
a) weight of equity = E / (E + D) = 33069.400 / (33069.400 + 68.664) = 0.9979
b) weight of debt = D / (E + D) = 68.664 / (33069.400 + 68.664) = 0.0021
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 7.02%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Shanti Educational Initiatives's beta is 1.5718.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 7.02% + 1.5718 * 6% = 16.4508%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Shanti Educational Initiatives's interest expense (positive number) was ₹6.237 Mil. Its total Book Value of Debt (D) is ₹68.664 Mil.
Cost of Debt = 6.237 / 68.664 = 9.0834%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 18.843 / 77.764 = 24.23%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Shanti Educational Initiatives (BOM:539921) has a WACC % of 16.43% as of Aug. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Shanti Educational Initiatives and its competitors. This is 48% above median its historical median of 11.13. Over the past decade, Shanti Educational Initiatives' WACC % has ranged from 3.64 to 19.53. According to the industry distribution chart, Shanti Educational Initiatives ranks #255 out of 268 companies in the Education industry, placing it in the top 95.1%.
Is Shanti Educational Initiatives' WACC % too high?
Shanti Educational Initiatives' current WACC % of 16.43% is 48% above median its 10-year median of 11.13. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 19.53. The Education industry median WACC % is 7.91. Shanti Educational Initiatives' value of 16.43% is 107.8% above this industry median. Based on the distribution chart, Shanti Educational Initiatives ranks #255 out of 268 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Shanti Educational Initiatives has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanti Educational Initiatives' WACC % compare to EDU and TAL?
According to the Education industry distribution chart, Shanti Educational Initiatives ranks #255 out of 268 companies for WACC %. This places Shanti Educational Initiatives in the lower half of its industry. The industry median WACC % is 7.91. Shanti Educational Initiatives' value of 16.43% is 107.8% above this benchmark. Historically, Shanti Educational Initiatives' own WACC % has ranged from 3.64 to 19.53 over the past decade. While the company's 10-year median is 11.13 vs. the industry median of 7.91, Shanti Educational Initiatives has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for an Education company?
The median WACC % among Education companies is 7.91, based on 268 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shanti Educational Initiatives's current WACC % of 16.43% is 107.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Shanti Educational Initiatives and its competitors. For the Education industry, the median WACC % is 7.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanti Educational Initiatives's current WACC % is 16.43%, which is 48% above median its own 10-year median of 11.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanti Educational Initiatives stock overvalued right now?
Based on GuruFocus' analysis, Shanti Educational Initiatives (BOM:539921) is currently considered Possible Value Trap. The stock's GF Value™ is ₹300.01, compared to a current price of ₹205.40 — trading 31.5% below its estimated fair value. The current WACC % is 16.43%, which is 48% above median its 10-year median of 11.13 and 107.8% above the Education industry median of 7.91. Shanti Educational Initiatives' overall GF Score™ is 77/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Shanti Educational Initiatives (BOM:539921), the current WACC % is 16.43% as of Aug. 02, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Shanti Educational Initiatives (BOM:539921) Overvalued in 2026?
Based on GuruFocus' analysis, Shanti Educational Initiatives stock appears to be undervalued.
The current stock price of ₹205.40 is trading 31.5% below its estimated GF Value™ of ₹300.01.
GuruFocus considers Shanti Educational Initiatives to be Possible Value Trap.
Key valuation signals for BOM:539921:
WACC %: 16.43% (48% above median its 10-year median of 11.13)
GF Value™: ₹300.01 vs. price of ₹205.40 (31.5% below fair value)
Industry Position: 107.8% above the Education median (#255 of 268)
No single metric tells the full story. See the BOM:539921 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanti Educational Initiatives Ltd is a school management solutions provider and education company. Its educational units include Shanti Asiatic schools, Shanti juniors, Shanti hopskotch, and Shanti business schools. The company services include infrastructure setup support, campus layout plan, building school governance manuals, complete administration of the school, marketing and branding, manpower mapping and resource planning, budgeting, and business and financial models. Its revenue comes from the sale of Services, Training Income, Education Services, and Franchisee Income.
77GF Score
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