ZEEL.NS WACC - Weighted Average Cost of Capital

The WACC of Zee Entertainment Enterprises Ltd (ZEEL.NS) is 15.1%.

The Cost of Equity of Zee Entertainment Enterprises Ltd (ZEEL.NS) is 15.45%.

The Cost of Debt of Zee Entertainment Enterprises Ltd (ZEEL.NS) is 10.80%.

	Range	Selected
Cost of equity	14.30% - 16.60%	15.45%
Tax rate	35.10% - 40.60%	37.85%
Cost of debt	7.50% - 14.10%	10.80%
WACC	13.9% - 16.2%	15.1%

WACC

ZEEL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.9	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	16.60%

Tax rate	35.10%	40.60%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.50%	14.10%

After-tax WACC	13.9%	16.2%


Selected WACC	15.1%

ZEEL.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 ZEEL.NS:

cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.