ZEEMEDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Zee Media Corporation Ltd (ZEEMEDIA.NS) is 13.6%.

The Cost of Equity of Zee Media Corporation Ltd (ZEEMEDIA.NS) is 14.95%.

The Cost of Debt of Zee Media Corporation Ltd (ZEEMEDIA.NS) is 9.20%.

	Range	Selected
Cost of equity	12.70% - 17.20%	14.95%
Tax rate	24.10% - 26.90%	25.50%
Cost of debt	7.00% - 11.40%	9.20%
WACC	11.5% - 15.7%	13.6%

WACC

ZEEMEDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.7	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	17.20%

Tax rate	24.10%	26.90%
Debt/Equity ratio	0.2	0.2
Cost of debt	7.00%	11.40%

After-tax WACC	11.5%	15.7%


Selected WACC	13.6%

ZEEMEDIA.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 ZEEMEDIA.NS:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.