ZEEL.NS
Zee Entertainment Enterprises Ltd
Price:  
128.11 
INR
Volume:  
4,377,355.00
India | Media
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ZEEL.NS WACC - Weighted Average Cost of Capital

The WACC of Zee Entertainment Enterprises Ltd (ZEEL.NS) is 16.2%.

The Cost of Equity of Zee Entertainment Enterprises Ltd (ZEEL.NS) is 16.25%.
The Cost of Debt of Zee Entertainment Enterprises Ltd (ZEEL.NS) is 20.15%.

Range Selected
Cost of equity 15.00% - 17.50% 16.25%
Tax rate 35.10% - 40.60% 37.85%
Cost of debt 7.50% - 32.80% 20.15%
WACC 14.8% - 17.5% 16.2%
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 0.98 1.03
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 17.50%
Tax rate 35.10% 40.60%
Debt/Equity ratio 0.02 0.02
Cost of debt 7.50% 32.80%
After-tax WACC 14.8% 17.5%
Selected WACC 16.2%

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 (16.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.