RADIOCITY.NS WACC - Weighted Average Cost of Capital

The WACC of Music Broadcast Ltd (RADIOCITY.NS) is 9.2%.

The Cost of Equity of Music Broadcast Ltd (RADIOCITY.NS) is 11.45%.

The Cost of Debt of Music Broadcast Ltd (RADIOCITY.NS) is 9.35%.

	Range	Selected
Cost of equity	9.70% - 13.20%	11.45%
Tax rate	27.80% - 35.30%	31.55%
Cost of debt	6.60% - 12.10%	9.35%
WACC	7.5% - 10.9%	9.2%

WACC

RADIOCITY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.34	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	13.20%

Tax rate	27.80%	35.30%
Debt/Equity ratio	0.77	0.77
Cost of debt	6.60%	12.10%

After-tax WACC	7.5%	10.9%


Selected WACC	9.2%

RADIOCITY.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 RADIOCITY.NS:

cost_of_equity (11.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.34) + 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.