EA
Electronic Arts Inc
Price:  
121.25 
USD
Volume:  
7,039,963.00
United States | Entertainment
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EA WACC - Weighted Average Cost of Capital

The WACC of Electronic Arts Inc (EA) is 6.6%.

The Cost of Equity of Electronic Arts Inc (EA) is 6.85%.
The Cost of Debt of Electronic Arts Inc (EA) is 4.25%.

Range Selected
Cost of equity 5.80% - 7.90% 6.85%
Tax rate 24.20% - 32.00% 28.10%
Cost of debt 4.00% - 4.50% 4.25%
WACC 5.6% - 7.7% 6.6%
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 0.41 0.55
Additional risk adjustments 0.0% 0.5%
Cost of equity 5.80% 7.90%
Tax rate 24.20% 32.00%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 4.50%
After-tax WACC 5.6% 7.7%
Selected WACC 6.6%