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Edison International (EIX) — WACC Analysis

WACC Breakdown

Edison International (EIX) has a weighted average cost of capital (WACC) of 5.2%. The cost of equity is 8.1%, derived from a beta of 0.53 and a risk-free rate of 5.2%. The after-tax cost of debt is 3.6%. The capital structure is 35.7% equity and 64.3% debt.

Interpretation

A WACC of 5.2% suggests that the market views Edison International as relatively low-risk, with a lower cost of financing.

Investors can compare EIX's WACC of 5.2% against industry peers to gauge its relative financing costs. A beta of 0.53 reflects the stock's volatility relative to the broader market.

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VALUATION

EIX WACC: 5.21% for Edison International

Current inputs imply a 8.09% 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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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
5.21%
Cost of Equity
8.09%
Risk-Free Rate5.19%
Beta0.53
Market Risk Premium4.23%
Cost of Debt
3.61%
Pre-Tax Cost of Debt4.57%
Tax Rate21.00%
Tax Shield0.96%
Capital Structure
Equity: 35.71%($21.41B)
Debt: 64.29%($38.55B)
Equity Component
2.89%
35.71% × 8.09%
Debt Component
2.32%
64.29% × 3.61%

Edison International (EIX) WACC in context

Edison International (EIX) currently screens with an estimated WACC of 5.21%. That blends a 8.09% cost of equity, a 4.57% pre-tax cost of debt, and a 35.71% 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 5.21% 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 0.53 and equity accounts for 35.71% 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.

EIX WACC: 5.21% — Edison International Cost of Capital (October 2026) | DeepViews