EA
Electronic Arts Inc
Price:  
127.75 
USD
Volume:  
3,205,572.00
United States | Entertainment
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EA WACC - Weighted Average Cost of Capital

The WACC of Electronic Arts Inc (EA) is 8.7%.

The Cost of Equity of Electronic Arts Inc (EA) is 9.05%.
The Cost of Debt of Electronic Arts Inc (EA) is 4.30%.

Range Selected
Cost of equity 7.70% - 10.40% 9.05%
Tax rate 23.30% - 32.00% 27.65%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.4% - 10.0% 8.7%
WACC

EA WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.82 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.70% 10.40%
Tax rate 23.30% 32.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 4.60%
After-tax WACC 7.4% 10.0%
Selected WACC 8.7%