CINELINE.NS WACC - Weighted Average Cost of Capital

The WACC of Cineline India Ltd (CINELINE.NS) is 13.7%.

The Cost of Equity of Cineline India Ltd (CINELINE.NS) is 13.65%.

The Cost of Debt of Cineline India Ltd (CINELINE.NS) is 18.60%.

	Range	Selected
Cost of equity	11.00% - 16.30%	13.65%
Tax rate	22.20% - 28.60%	25.40%
Cost of debt	13.30% - 23.90%	18.60%
WACC	10.6% - 16.7%	13.7%

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	0.49	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	16.30%

Tax rate	22.20%	28.60%
Debt/Equity ratio	1.11	1.11
Cost of debt	13.30%	23.90%

After-tax WACC	10.6%	16.7%


Selected WACC	13.7%

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 (13.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.