CINE.L WACC - Weighted Average Cost of Capital

The WACC of Cineworld Group PLC (CINE.L) is 11.0%.

The Cost of Equity of Cineworld Group PLC (CINE.L) is 298.95%.

The Cost of Debt of Cineworld Group PLC (CINE.L) is 12.90%.

	Range	Selected
Cost of equity	90.40% - 507.50%	298.95%
Tax rate	15.90% - 17.30%	16.60%
Cost of debt	10.00% - 15.80%	12.90%
WACC	8.5% - 13.4%	11.0%

WACC

CINE.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	14.44	72

Additional risk adjustments	0.0%	0.5%
Cost of equity	90.40%	507.50%

Tax rate	15.90%	17.30%
Debt/Equity ratio	1329.23	1329.23
Cost of debt	10.00%	15.80%

After-tax WACC	8.5%	13.4%


Selected WACC	11.0%

CINE.L'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 CINE.L:

cost_of_equity (298.95%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (14.44) + 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.