Calculation details for Ravi Teja

Step #1 - Historical movie details for Ravi Teja

No Movie Year Tamilnadu Collection Domestic Collection Overseas Collection Total Collection
1 Balupu 2013 38.00 43.90 3.67 47.57
2 Power 2014 33.00 39.20 3.00 42.20
3 Bengal Tiger 2015 31.50 37.15 2.40 39.55

Step #2 - Adjust collections based on inflation rate

We all know that movie ticket prices aren't what they used to be. The cost of consumer goods and services rise each year. So, taking inflation into account is the only way to meaningfully compare the box office collection of movies over time. Ideally we should use India inflation rate for adjusting box office collection in India and inflation rate from respective countries for overseas collection. For simplicity, our calculations assume US inflation rate as the basis for adjusting the box office collection of all overseas countries. We also take into account the currency rate change over a period of time to accurately calculate the present box office collection values of historical movies.

Step #2a - Collect data to calculate inflation (courtesy www.worldbank.org, www.wikipedia.org/)

Year India Inflation Rate India CPI (Consumer Price Index)
2013 10.90764331 131.9747419
2014 6.353194544 140.7504026
2015 5.872426595 147.6569875
2016 4.97 154.99553977
2017 0.8 156.235504088
Year US Inflation Rate US CPI (Consumer Price Index)
2013 1.464832656 106.8338489
2014 1.622222977 108.5669321
2015 0.118627136 108.695722
2016 1.3 110.108766386
2017 2.5 112.86148554565
Year Average US Dollar to Indian Rupees Exchange Rate
2013 60.936
2014 63.469
2015 64.20012
2016 67.26527
2017 67.69355

Step #2b - Apply inflation

Present box office collection value of historical movies is calculated by using a simple formula:

Collection(y) = ( CPI(y) / CPI(x) ) * Collection(x)

where "x" represents historical CPI and box office collection values and "y" represents current values.

Example domestic calculations for Balupu
Balupu release year
2013
2013 CPI value
131.9747419
Current CPI value
156.235504088
India collection in 2013
43.90 Cr
Inflation adjusted collection
(156.235504088 / 131.9747419 ) * 43.90 = 51.97Cr
Example overseas calculations for Balupu
Balupu release year
2013
2013 CPI value
106.8338489
2013 USD to INR exchange rate
60.936
Current CPI value
112.86148554565
Current USD to INR exchange rate
67.69355
Overseas collection in 2013
3.67 Cr = 3.67/60.936 = $0.60MM
Present value of collection USD
(112.86148554565 / 106.8338489 ) * 0.60227123539451 = $0.64 MM
Present value of collection INR
$0.64MM * 67.69355 = 4.31 Cr

Total Balupu collection in 2013 = 43.90 + 3.67 = 47.57 Cr

Present value of Balupu collection = 51.97 + 4.31 = 56.28 Cr

Step #2c - Calculate present value of collection based on inflation for all movies

No Movie Year Inflation Adjusted Tamilnadu Collection Inflation Adjusted Domestic Collection Inflation Adjusted Overseas Collection Inflation Adjusted Total Collection
1 Balupu 2013 44.99 51.97 4.31 56.28
2 Power 2014 36.63 43.51 3.33 46.84
3 Bengal Tiger 2015 33.33 39.31 2.63 41.94

Step #3 - Calculate expected collection based on weightage

For calculating expected collection for an actor, we give appropriate weightage to the movies based on several factors. The weighted average is used to calculate the expected collection of an actor.
No Movie Year Inflation Adjusted Total Collection Weightage Collection * Weightage
1 Balupu 2013 56.28 1.00 56.28
2 Power 2014 46.84 1.00 46.84
3 Bengal Tiger 2015 41.94 1.00 41.94
Total 3 145.05

Total expected collection for Ravi Teja = 145.05/3 = 48.35 Cr