CINE.L WACC - Weighted Average Cost of Capital

The WACC of Cineworld Group PLC (CINE.L) is 10.9%.

The Cost of Equity of Cineworld Group PLC (CINE.L) is 178.90%.

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

	Range	Selected
Cost of equity	5.40% - 352.40%	178.90%
Tax rate	15.90% - 17.30%	16.60%
Cost of debt	10.00% - 15.80%	12.90%
WACC	8.4% - 13.3%	10.9%

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	-2.19	47.69

Additional risk adjustments	14.5%	15.0%
Cost of equity	5.40%	352.40%

Tax rate	15.90%	17.30%
Debt/Equity ratio	1304.01	1304.01
Cost of debt	10.00%	15.80%

After-tax WACC	8.4%	13.3%


Selected WACC	10.9%

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 (178.90%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (-2.19) + risk_adjustments (14.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.