HOV
Hovnanian Enterprises Inc
Price:  
192.39 
USD
Volume:  
93,674.00
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 14.70%.
The Cost of Debt of Hovnanian Enterprises Inc (HOV) is 4.90%.

Range Selected
Cost of equity 12.80% - 16.60% 14.70%
Tax rate 15.00% - 23.50% 19.25%
Cost of debt 4.70% - 5.10% 4.90%
WACC 8.7% - 10.7% 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 1.93 2.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 16.60%
Tax rate 15.00% 23.50%
Debt/Equity ratio 0.88 0.88
Cost of debt 4.70% 5.10%
After-tax WACC 8.7% 10.7%
Selected WACC 9.7%