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