RADIOCITY.NS WACC - Weighted Average Cost of Capital

The WACC of Music Broadcast Ltd (RADIOCITY.NS) is 10.9%.

The Cost of Equity of Music Broadcast Ltd (RADIOCITY.NS) is 12.60%.

The Cost of Debt of Music Broadcast Ltd (RADIOCITY.NS) is 8.55%.

	Range	Selected
Cost of equity	11.00% - 14.20%	12.60%
Tax rate	29.30% - 35.30%	32.30%
Cost of debt	7.60% - 9.50%	8.55%
WACC	9.6% - 12.2%	10.9%

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	0.49	0.69

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	14.20%

Tax rate	29.30%	35.30%
Debt/Equity ratio	0.33	0.33
Cost of debt	7.60%	9.50%

After-tax WACC	9.6%	12.2%


Selected WACC	10.9%

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 (12.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.