CINELINE.NS WACC - Weighted Average Cost of Capital

The WACC of Cineline India Ltd (CINELINE.NS) is 15.5%.

The Cost of Equity of Cineline India Ltd (CINELINE.NS) is 15.85%.

The Cost of Debt of Cineline India Ltd (CINELINE.NS) is 19.40%.

	Range	Selected
Cost of equity	13.70% - 18.00%	15.85%
Tax rate	21.00% - 21.80%	21.40%
Cost of debt	11.90% - 26.90%	19.40%
WACC	11.4% - 19.6%	15.5%

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	0.82	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	18.00%

Tax rate	21.00%	21.80%
Debt/Equity ratio	1.11	1.11
Cost of debt	11.90%	26.90%

After-tax WACC	11.4%	19.6%


Selected WACC	15.5%

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 (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.