BVH
Bluegreen Vacations Holding Corp
Price:  
75.00 
USD
Volume:  
652,795.00
United States | Hotels, Restaurants & Leisure
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BVH WACC - Weighted Average Cost of Capital

The WACC of Bluegreen Vacations Holding Corp (BVH) is 7.4%.

The Cost of Equity of Bluegreen Vacations Holding Corp (BVH) is 7.90%.
The Cost of Debt of Bluegreen Vacations Holding Corp (BVH) is 10.35%.

Range Selected
Cost of equity 6.10% - 9.70% 7.90%
Tax rate 26.00% - 30.70% 28.35%
Cost of debt 5.10% - 15.60% 10.35%
WACC 4.3% - 10.6% 7.4%
WACC

BVH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.48 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 6.10% 9.70%
Tax rate 26.00% 30.70%
Debt/Equity ratio 3.16 3.16
Cost of debt 5.10% 15.60%
After-tax WACC 4.3% 10.6%
Selected WACC 7.4%

BVH'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 BVH:

cost_of_equity (7.90%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.48) + 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.