CINEVISTA.NS WACC - Weighted Average Cost of Capital

The WACC of Cinevista Ltd (CINEVISTA.NS) is 11.8%.

The Cost of Equity of Cinevista Ltd (CINEVISTA.NS) is 13.20%.

The Cost of Debt of Cinevista Ltd (CINEVISTA.NS) is 8.10%.

	Range	Selected
Cost of equity	11.70% - 14.70%	13.20%
Tax rate	12.90% - 24.20%	18.55%
Cost of debt	8.10% - 8.10%	8.10%
WACC	10.7% - 12.8%	11.8%

WACC

CINEVISTA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.58	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	14.70%

Tax rate	12.90%	24.20%
Debt/Equity ratio	0.28	0.28
Cost of debt	8.10%	8.10%

After-tax WACC	10.7%	12.8%


Selected WACC	11.8%

CINEVISTA.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 CINEVISTA.NS:

cost_of_equity (13.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.