CINELINE.NS WACC - Weighted Average Cost of Capital

The WACC of Cineline India Ltd (CINELINE.NS) is 12.0%.

The Cost of Equity of Cineline India Ltd (CINELINE.NS) is 13.50%.

The Cost of Debt of Cineline India Ltd (CINELINE.NS) is 10.80%.

	Range	Selected
Cost of equity	12.30% - 14.70%	13.50%
Tax rate	22.30% - 23.10%	22.70%
Cost of debt	10.50% - 11.10%	10.80%
WACC	11.1% - 12.9%	12.0%

WACC

CINELINE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.70%

Tax rate	22.30%	23.10%
Debt/Equity ratio	0.41	0.41
Cost of debt	10.50%	11.10%

After-tax WACC	11.1%	12.9%


Selected WACC	12.0%

CINELINE.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 CINELINE.NS:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.