HOV
Hovnanian Enterprises Inc
Price:  
131.11 
USD
Volume:  
57,469.00
United States | Household Durables
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HOV WACC - Weighted Average Cost of Capital

The WACC of Hovnanian Enterprises Inc (HOV) is 9.0%.

The Cost of Equity of Hovnanian Enterprises Inc (HOV) is 14.90%.
The Cost of Debt of Hovnanian Enterprises Inc (HOV) is 5.75%.

Range Selected
Cost of equity 12.70% - 17.10% 14.90%
Tax rate 22.00% - 26.00% 24.00%
Cost of debt 4.50% - 7.00% 5.75%
WACC 7.6% - 10.5% 9.0%
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 1.91 2.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.70% 17.10%
Tax rate 22.00% 26.00%
Debt/Equity ratio 1.23 1.23
Cost of debt 4.50% 7.00%
After-tax WACC 7.6% 10.5%
Selected WACC 9.0%