The WACC of Meritage Homes Corp (MTH) is 9.6%.
Range | Selected | |
Cost of equity | 9.20% - 12.10% | 10.65% |
Tax rate | 21.60% - 22.40% | 22.00% |
Cost of debt | 5.00% - 5.00% | 5.00% |
WACC | 8.4% - 10.8% | 9.6% |
Category | Low | High |
Long-term bond rate | 3.9% | 4.4% |
Equity market risk premium | 4.6% | 5.6% |
Adjusted beta | 1.17 | 1.29 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 9.20% | 12.10% |
Tax rate | 21.60% | 22.40% |
Debt/Equity ratio | 0.18 | 0.18 |
Cost of debt | 5.00% | 5.00% |
After-tax WACC | 8.4% | 10.8% |
Selected WACC | 9.6% | |