The WACC of KB Home (KBH) is 9.6%.
Range | Selected | |
Cost of equity | 9.70% - 12.50% | 11.10% |
Tax rate | 21.20% - 23.10% | 22.15% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 8.5% - 10.7% | 9.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.27 | 1.37 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.70% | 12.50% |
Tax rate | 21.20% | 23.10% |
Debt/Equity ratio | 0.27 | 0.27 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 8.5% | 10.7% |
Selected WACC | 9.6% | |