EA
Electronic Arts Inc
Price:  
144.01 
USD
Volume:  
1,785,549.00
United States | Entertainment
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EA WACC - Weighted Average Cost of Capital

The WACC of Electronic Arts Inc (EA) is 7.6%.

The Cost of Equity of Electronic Arts Inc (EA) is 7.85%.
The Cost of Debt of Electronic Arts Inc (EA) is 4.25%.

Range Selected
Cost of equity 6.90% - 8.80% 7.85%
Tax rate 24.20% - 32.00% 28.10%
Cost of debt 4.00% - 4.50% 4.25%
WACC 6.7% - 8.5% 7.6%
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 0.65 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.90% 8.80%
Tax rate 24.20% 32.00%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.50%
After-tax WACC 6.7% 8.5%
Selected WACC 7.6%