AEO
American Eagle Outfitters Inc
Price:  
17.70 
USD
Volume:  
7,222,853.00
United States | Specialty Retail
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AEO WACC - Weighted Average Cost of Capital

The WACC of American Eagle Outfitters Inc (AEO) is 6.4%.

The Cost of Equity of American Eagle Outfitters Inc (AEO) is 9.55%.
The Cost of Debt of American Eagle Outfitters Inc (AEO) is 4.50%.

Range Selected
Cost of equity 7.50% - 11.60% 9.55%
Tax rate 27.00% - 28.70% 27.85%
Cost of debt 4.50% - 4.50% 4.50%
WACC 5.4% - 7.4% 6.4%
WACC

AEO WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.8 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.50% 11.60%
Tax rate 27.00% 28.70%
Debt/Equity ratio 1 1
Cost of debt 4.50% 4.50%
After-tax WACC 5.4% 7.4%
Selected WACC 6.4%