ENIL.NS WACC - Weighted Average Cost of Capital

The WACC of Entertainment Network (India) Ltd (ENIL.NS) is 13.4%.

The Cost of Equity of Entertainment Network (India) Ltd (ENIL.NS) is 15.15%.

The Cost of Debt of Entertainment Network (India) Ltd (ENIL.NS) is 10.10%.

	Range	Selected
Cost of equity	12.80% - 17.50%	15.15%
Tax rate	19.40% - 24.00%	21.70%
Cost of debt	8.10% - 12.10%	10.10%
WACC	11.3% - 15.5%	13.4%

WACC

ENIL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.71	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	17.50%

Tax rate	19.40%	24.00%
Debt/Equity ratio	0.31	0.31
Cost of debt	8.10%	12.10%

After-tax WACC	11.3%	15.5%


Selected WACC	13.4%

ENIL.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 ENIL.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.