LGIH
LGI Homes Inc
Price:  
106.95 
USD
Volume:  
273,207.00
United States | Household Durables
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LGIH WACC - Weighted Average Cost of Capital

The WACC of LGI Homes Inc (LGIH) is 10.4%.

The Cost of Equity of LGI Homes Inc (LGIH) is 13.60%.
The Cost of Debt of LGI Homes Inc (LGIH) is 6.05%.

Range Selected
Cost of equity 12.00% - 15.20% 13.60%
Tax rate 21.50% - 22.30% 21.90%
Cost of debt 5.50% - 6.60% 6.05%
WACC 9.2% - 11.6% 10.4%
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 1.76 1.84
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.00% 15.20%
Tax rate 21.50% 22.30%
Debt/Equity ratio 0.55 0.55
Cost of debt 5.50% 6.60%
After-tax WACC 9.2% 11.6%
Selected WACC 10.4%