LGIH
LGI Homes Inc
Price:  
94.62 
USD
Volume:  
147,287.00
United States | Household Durables
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LGIH WACC - Weighted Average Cost of Capital

The WACC of LGI Homes Inc (LGIH) is 10.2%.

The Cost of Equity of LGI Homes Inc (LGIH) is 13.20%.
The Cost of Debt of LGI Homes Inc (LGIH) is 6.05%.

Range Selected
Cost of equity 11.40% - 15.00% 13.20%
Tax rate 21.50% - 22.30% 21.90%
Cost of debt 5.50% - 6.60% 6.05%
WACC 8.9% - 11.5% 10.2%
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 1.64 1.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 15.00%
Tax rate 21.50% 22.30%
Debt/Equity ratio 0.55 0.55
Cost of debt 5.50% 6.60%
After-tax WACC 8.9% 11.5%
Selected WACC 10.2%