CIDM
Cinedigm Corp
Price:  
0.29 
USD
Volume:  
1,112,320.00
United States | Entertainment
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CIDM WACC - Weighted Average Cost of Capital

The WACC of Cinedigm Corp (CIDM) is 8.8%.

The Cost of Equity of Cinedigm Corp (CIDM) is 9.05%.
The Cost of Debt of Cinedigm Corp (CIDM) is 7.00%.

Range Selected
Cost of equity 7.00% - 11.10% 9.05%
Tax rate 1.10% - 11.60% 6.35%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.0% - 10.6% 8.8%
WACC

CIDM WACC calculation

Category Low High
Long-term bond rate 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.56 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.00% 11.10%
Tax rate 1.10% 11.60%
Debt/Equity ratio 0.09 0.09
Cost of debt 7.00% 7.00%
After-tax WACC 7.0% 10.6%
Selected WACC 8.8%

CIDM'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 CIDM:

cost_of_equity (9.05%) = risk_free_rate (4.45%) + equity_risk_premium (5.50%) * adjusted_beta (0.56) + 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.