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Edison International (EIX) — WACC Analysis

WACC Breakdown

Edison International (EIX) has a weighted average cost of capital (WACC) of 5.3%. The cost of equity is 7.7%, derived from a beta of 0.54 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.6%. The capital structure is 41.2% equity and 58.8% debt.

Interpretation

A WACC of 5.3% suggests that the market views Edison International as relatively low-risk, with a lower cost of financing.

Investors can compare EIX's WACC of 5.3% against industry peers to gauge its relative financing costs. A beta of 0.54 reflects the stock's volatility relative to the broader market.

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VALUATION

EIX WACC: 5.28% for Edison International

Current inputs imply a 7.66% cost of equity and a 4.57% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Edison International Common Stock (EIX) WACC Results
Weighted Average Cost of Capital
5.28%
Cost of Equity
7.66%
Risk-Free Rate4.73%
Beta0.54
Market Risk Premium4.23%
Cost of Debt
3.61%
Pre-Tax Cost of Debt4.57%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 41.19%($27.00B)
Debt: 58.81%($38.55B)
Equity Component
3.16%
41.19% × 7.66%
Debt Component
2.12%
58.81% × 3.61%

Edison International (EIX) WACC in context

Edison International (EIX) currently screens with an estimated WACC of 5.28%. That blends a 7.66% cost of equity, a 4.57% pre-tax cost of debt, and a 41.19% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What EIX WACC implies

A 5.28% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates EIX

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.54 and equity accounts for 41.19% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.