Kuwait National Cinema Co (KUW:KCIN) WACC %:7.71% (As of Sep. 03, 2026) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

KUW:KCIN Kuwait National Cinema Co KUW:KCIN
81 GF Score
Price KWD1.35
GF Value KWD1.47
Valuation Fairly Valued
! 7 Warning Signs
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What is Kuwait National Cinema Co WACC %?

Kuwait National Cinema Co KUW:KCIN 81 WACC % is 7.71% as of Sep. 03, 2026, which is 6% above its 10-year median of 7.27. GuruFocus rates KUW:KCIN with a GF Score™ of 81/100 and a GF Value™ of KWD1.47 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,037 Media - Diversified companies, Kuwait National Cinema Co ranks worse than 53.42% on this metric.

As of today (2026-09-03), Kuwait National Cinema Co's weighted average cost of capital is 7.71%%. Kuwait National Cinema Co's ROIC % is 7.96% (calculated using TTM income statement data). Kuwait National Cinema Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.

For a comprehensive WACC calculation, please access the WACC Calculator.


Kuwait National Cinema Co  (KUW:KCIN) WACC % Explanation

Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Kuwait National Cinema Co's weighted average cost of capital is 7.71%%. Kuwait National Cinema Co's ROIC % is 7.96% (calculated using TTM income statement data). Kuwait National Cinema Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.

*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.


Be Aware

1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.

2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.

3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.

4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.


Related Terms

Kuwait National Cinema Co WACC % Historical Data

* Premium members only.

The historical data trend for Kuwait National Cinema Co's WACC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kuwait National Cinema Co WACC % Chart

Kuwait National Cinema Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.15 5.78 6.47 7.54 7.61

Kuwait National Cinema Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.36 7.25 7.61 7.40 7.43

KUW:KCIN vs NFLX, DIS, WBD: WACC % Comparison

For the Entertainment subindustry, Kuwait National Cinema Co's WACC %, along with its competitors' market caps and WACC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kuwait National Cinema Co WACC % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Kuwait National Cinema Co's WACC % distribution charts can be found below:

* The bar in red indicates where Kuwait National Cinema Co's WACC % falls into.


KUW:KCIN
81GF Score
Kuwait National Cinema Co KUW:KCIN
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Kuwait National Cinema Co WACC % Calculation

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.

WACC=E/(E + D)*Cost of Equity+D/(E + D)*Cost of Debt*(1 - Tax Rate)

1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Kuwait National Cinema Co's market capitalization (E) is KWD124.920 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Jun. 2026, Kuwait National Cinema Co's latest one-year quarterly average Book Value of Debt (D) is KWD112.304 Mil.
a) weight of equity = E / (E + D) = 124.920 / (124.920 + 112.304) = 0.5266
b) weight of debt = D / (E + D) = 112.304 / (124.920 + 112.304) = 0.4734

2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.772%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Kuwait National Cinema Co's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.772% + 1 * 6% = 10.772%

3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Jun. 2026, Kuwait National Cinema Co's interest expense (positive number) was KWD5.018 Mil. Its total Book Value of Debt (D) is KWD112.304 Mil.
Cost of Debt = 5.018 / 112.304 = 4.4682%.

4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 0.727 / 19.437 = 3.74%.

Kuwait National Cinema Co's Weighted Average Cost Of Capital (WACC) for Today is calculated as:

WACC=E / (E + D)*Cost of Equity+D / (E + D)*Cost of Debt*(1 - Tax Rate)
=0.5266*10.772%+0.4734*4.4682%*(1 - 3.74%)
=7.71%

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 7.71% mean?
Kuwait National Cinema Co (KUW:KCIN) has a WACC % of 7.71% as of Sep. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Kuwait National Cinema Co and its competitors. This is near median its historical median of 7.27. Over the past decade, Kuwait National Cinema Co's WACC % has ranged from 5.15 to 7.76. According to the industry distribution chart, Kuwait National Cinema Co ranks #554 out of 1037 companies in the Media - Diversified industry, placing it in the top 53.4%.
Is Kuwait National Cinema Co's WACC % too high?
Kuwait National Cinema Co's current WACC % of 7.71% is near median its 10-year median of 7.27. Over the past 10 years, this metric has ranged from a low of 5.15 to a high of 7.76. The Media - Diversified industry median WACC % is 7.34. Kuwait National Cinema Co's value of 7.71% is 5% above this industry median. Based on the distribution chart, Kuwait National Cinema Co ranks #554 out of 1037 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Kuwait National Cinema Co has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kuwait National Cinema Co's WACC % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Kuwait National Cinema Co ranks #554 out of 1037 companies for WACC %. This places Kuwait National Cinema Co in the lower half of its industry. The industry median WACC % is 7.34. Kuwait National Cinema Co's value of 7.71% is 5% above this benchmark. Historically, Kuwait National Cinema Co's own WACC % has ranged from 5.15 to 7.76 over the past decade. While the company's 10-year median is 7.27 vs. the industry median of 7.34, Kuwait National Cinema Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Media - Diversified company?
The median WACC % among Media - Diversified companies is 7.34, based on 1,037 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kuwait National Cinema Co's current WACC % of 7.71% is 5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Kuwait National Cinema Co and its competitors. For the Media - Diversified industry, the median WACC % is 7.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuwait National Cinema Co's current WACC % is 7.71%, which is near median its own 10-year median of 7.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuwait National Cinema Co stock overvalued right now?
Based on GuruFocus' analysis, Kuwait National Cinema Co (KUW:KCIN) is currently considered Fairly Valued. The stock's GF Value™ is KWD1.47, compared to a current price of KWD1.35 — trading 8.2% below its estimated fair value. The current WACC % is 7.71%, which is near median its 10-year median of 7.27 and 5% above the Media - Diversified industry median of 7.34. Kuwait National Cinema Co's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Kuwait National Cinema Co (KUW:KCIN), the current WACC % is 7.71% as of Sep. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kuwait National Cinema Co (KUW:KCIN) Overvalued in 2026?

Based on GuruFocus' analysis, Kuwait National Cinema Co stock appears to be undervalued. The current stock price of KWD1.35 is trading 8.2% below its estimated GF Value™ of KWD1.47. GuruFocus considers Kuwait National Cinema Co to be Fairly Valued.

Key valuation signals for KUW:KCIN:

  • WACC %: 7.71% (near median its 10-year median of 7.27)
  • GF Value™: KWD1.47 vs. price of KWD1.35 (8.2% below fair value)
  • GF Score™: 81/100 with 7 warning signs
  • Industry Position: 5% above the Media - Diversified median (#554 of 1037)

No single metric tells the full story. See the KUW:KCIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kuwait National Cinema Co Business Description

Address Airport Road, Old Khaitan Area, Plot 9, Sama Khaitan Mall, Building 164, 2nd Floor, Office 1 and 2, P.O. Box 502, Safat, Kuwait, KWT, 13006
Kuwait National Cinema Company KPSC operates in the entertainment industry. It owns and operates cinema theatres under the Cinescape brand across different locations in Kuwait and the nearby region, operating as an exhibitor of movies from different genres and languages. The company operates in the following segments: Cinema and Buffets, Investment, and Investment properties. Maximum revenue is derived from the Cinema and Buffets segment, which represents all activities related to cinema shows, film distribution, as well as activities related to buffets, supplemented by theatres. The Investment segment represents investment in equity, investment funds, and investments in an associate; and the Investment properties segment represents activities related to rental of investment properties.
81GF Score

Get the complete analysis for KUW:KCIN

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

KWD1.35
Price
KWD1.47
GF Value