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