HOV
Hovnanian Enterprises Inc
Price:  
192.99 
USD
Volume:  
58,490.00
United States | Household Durables
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HOV WACC - Weighted Average Cost of Capital

The WACC of Hovnanian Enterprises Inc (HOV) is 9.7%.

The Cost of Equity of Hovnanian Enterprises Inc (HOV) is 14.40%.
The Cost of Debt of Hovnanian Enterprises Inc (HOV) is 5.85%.

Range Selected
Cost of equity 12.60% - 16.20% 14.40%
Tax rate 15.00% - 23.50% 19.25%
Cost of debt 4.70% - 7.00% 5.85%
WACC 8.4% - 10.9% 9.7%
WACC

HOV WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.9 2.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.60% 16.20%
Tax rate 15.00% 23.50%
Debt/Equity ratio 0.95 0.95
Cost of debt 4.70% 7.00%
After-tax WACC 8.4% 10.9%
Selected WACC 9.7%