LGIH
LGI Homes Inc
Price:  
104.80 
USD
Volume:  
108,408.00
United States | Household Durables
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LGIH WACC - Weighted Average Cost of Capital

The WACC of LGI Homes Inc (LGIH) is 10.3%.

The Cost of Equity of LGI Homes Inc (LGIH) is 13.25%.
The Cost of Debt of LGI Homes Inc (LGIH) is 6.25%.

Range Selected
Cost of equity 11.50% - 15.00% 13.25%
Tax rate 21.50% - 22.30% 21.90%
Cost of debt 5.50% - 7.00% 6.25%
WACC 9.0% - 11.7% 10.3%
WACC

LGIH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.67 1.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.50% 15.00%
Tax rate 21.50% 22.30%
Debt/Equity ratio 0.53 0.53
Cost of debt 5.50% 7.00%
After-tax WACC 9.0% 11.7%
Selected WACC 10.3%