HOV
Hovnanian Enterprises Inc
Price:  
216.02 
USD
Volume:  
104,812.00
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 15.70%.
The Cost of Debt of Hovnanian Enterprises Inc (HOV) is 5.05%.

Range Selected
Cost of equity 13.80% - 17.60% 15.70%
Tax rate 15.00% - 23.50% 19.25%
Cost of debt 4.70% - 5.40% 5.05%
WACC 8.8% - 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 2.16 2.28
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.80% 17.60%
Tax rate 15.00% 23.50%
Debt/Equity ratio 1.06 1.06
Cost of debt 4.70% 5.40%
After-tax WACC 8.8% 10.7%
Selected WACC 9.7%