LGIH
LGI Homes Inc
Price:  
99.85 
USD
Volume:  
306,546.00
United States | Household Durables
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LGIH WACC - Weighted Average Cost of Capital

The WACC of LGI Homes Inc (LGIH) is 10.0%.

The Cost of Equity of LGI Homes Inc (LGIH) is 12.95%.
The Cost of Debt of LGI Homes Inc (LGIH) is 6.25%.

Range Selected
Cost of equity 11.30% - 14.60% 12.95%
Tax rate 21.50% - 22.30% 21.90%
Cost of debt 5.50% - 7.00% 6.25%
WACC 8.7% - 11.3% 10.0%
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 1.61 1.74
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.30% 14.60%
Tax rate 21.50% 22.30%
Debt/Equity ratio 0.58 0.58
Cost of debt 5.50% 7.00%
After-tax WACC 8.7% 11.3%
Selected WACC 10.0%