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Champion Homes, Inc. (SKY) — WACC Analysis

WACC Breakdown

Champion Homes, Inc. (SKY) has a weighted average cost of capital (WACC) of 10.6%. The cost of equity is 10.5%, derived from a beta of 1.38 and a risk-free rate of 5.2%. The after-tax cost of debt is 25.1%. The capital structure is 99.5% equity and 0.5% debt.

Interpretation

A WACC of 10.6% is moderate, reflecting the market's balanced risk assessment of Champion Homes, Inc..

Investors can compare SKY's WACC of 10.6% against industry peers to gauge its relative financing costs. A beta of 1.38 reflects the stock's volatility relative to the broader market.

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VALUATION

SKY WACC: 10.60% for Champion Homes, Inc.

Current inputs imply a 10.52% cost of equity and a 31.74% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Champion Homes, Inc. Common Stock (SKY) WACC Results
Weighted Average Cost of Capital
10.60%
Cost of Equity
10.52%
Risk-Free Rate5.22%
Beta1.38
Market Risk Premium4.23%
Cost of Debt
25.08%
Pre-Tax Cost of Debt31.74%
Tax Rate21.00%
Tax Shield6.67%
Capital Structure
Equity: 99.45%($4322.33M)
Debt: 0.55%($23.78M)
Equity Component
10.46%
99.45% × 10.52%
Debt Component
0.14%
0.55% × 25.08%

Champion Homes, Inc. (SKY) WACC in context

Champion Homes, Inc. (SKY) currently screens with an estimated WACC of 10.60%. That blends a 10.52% cost of equity, a 31.74% pre-tax cost of debt, and a 99.45% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What SKY WACC implies

A 10.60% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates SKY

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.38 and equity accounts for 99.45% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.