EA
Electronic Arts Inc
Price:  
145.18 
USD
Volume:  
2,341,229.00
United States | Entertainment
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EA WACC - Weighted Average Cost of Capital

The WACC of Electronic Arts Inc (EA) is 7.2%.

The Cost of Equity of Electronic Arts Inc (EA) is 7.40%.
The Cost of Debt of Electronic Arts Inc (EA) is 4.30%.

Range Selected
Cost of equity 6.00% - 8.80% 7.40%
Tax rate 24.20% - 32.00% 28.10%
Cost of debt 4.00% - 4.60% 4.30%
WACC 5.9% - 8.6% 7.2%
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 0.46 0.7
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.00% 8.80%
Tax rate 24.20% 32.00%
Debt/Equity ratio 0.05 0.05
Cost of debt 4.00% 4.60%
After-tax WACC 5.9% 8.6%
Selected WACC 7.2%