EDR
Endeavor Group Holdings Inc
Price:  
29.25 
USD
Volume:  
38,269,360
United States | Entertainment

EDR WACC - Weighted Average Cost of Capital

The WACC of Endeavor Group Holdings Inc (EDR) is 8.6%.

The Cost of Equity of Endeavor Group Holdings Inc (EDR) is 8.65%.
The Cost of Debt of Endeavor Group Holdings Inc (EDR) is 9.65%.

RangeSelected
Cost of equity7.4% - 9.9%8.65%
Tax rate7.6% - 16.2%11.9%
Cost of debt7.0% - 12.3%9.65%
WACC7.2% - 10.0%8.6%
WACC

EDR WACC calculation

CategoryLowHigh
Long-term bond rate3.9%4.4%
Equity market risk premium4.6%5.6%
Adjusted beta0.770.91
Additional risk adjustments0.0%0.5%
Cost of equity7.4%9.9%
Tax rate7.6%16.2%
Debt/Equity ratio
0.30.3
Cost of debt7.0%12.3%
After-tax WACC7.2%10.0%
Selected WACC8.6%

EDR's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for EDR:

cost_of_equity (8.65%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.77) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.