HOVVB (Hovnanian Enterprises) Effective Interest Rate on Debt %: 5.36% (As of Apr. 2026)


HOVVB Hovnanian Enterprises Inc HOVVB
70 GF Score
Price $110.00
GF Value $112.49
Valuation Fairly Valued
! 7 Warning Signs
View Full Analysis

What is Hovnanian Enterprises Effective Interest Rate on Debt %?

Hovnanian Enterprises HOVVB 70 Effective Interest Rate on Debt % is 5.36% as of Apr. 2026. GuruFocus rates HOVVB with a GF Score™ of 70/100 and a GF Value™ of $112.49 (Fairly Valued). The stock has 7 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Hovnanian Enterprises's annualized positive value of Interest Expense for the quarter that ended in Apr. 2026 was $50 Mil. Hovnanian Enterprises's average total debt for the quarter that ended in Apr. 2026 was $932 Mil. Therefore, Hovnanian Enterprises's annualized Effective Interest Rate on Debt % for the quarter that ended in Apr. 2026 was 5.36%.


Hovnanian Enterprises  (OTCPK:HOVVB) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Hovnanian Enterprises Effective Interest Rate on Debt % Related Terms


Hovnanian Enterprises Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Hovnanian Enterprises's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Hovnanian Enterprises Effective Interest Rate on Debt % Chart

Hovnanian Enterprises Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.25 3.55 4.44 2.89 3.70

Hovnanian Enterprises Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.80 3.08 4.17 5.23 5.36

HOVVB vs BZH, LEGH, VNJA: Effective Interest Rate on Debt % Comparison

For the Residential Construction subindustry, Hovnanian Enterprises's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hovnanian Enterprises Effective Interest Rate on Debt % vs Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Hovnanian Enterprises's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Hovnanian Enterprises's Effective Interest Rate on Debt % falls into.


HOVVB
70GF Score
Hovnanian Enterprises Inc HOVVB
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hovnanian Enterprises Effective Interest Rate on Debt % Calculation

Hovnanian Enterprises's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Oct. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Oct. 2024 )+Total Debt  (A: Oct. 2025 ))/ count )
=-1  *  -35.441/( (986.893+930.212)/ 2 )
=-1  *  -35.441/958.5525
=3.70 %

where

Total Debt  (A: Oct. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=986.893 + 0
=986.893

Total Debt  (A: Oct. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=930.212 + 0
=930.212

Hovnanian Enterprises's annualized Effective Interest Rate on Debt % for the quarter that ended in Apr. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jan. 2026 )+Total Debt  (Q: Apr. 2026 ))/ count )
=-1  *  -49.96/( (929.855+934.603)/ 2 )
=-1  *  -49.96/932.229
=5.36 %

where

Total Debt  (Q: Jan. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=929.855 + 0
=929.855

Total Debt  (Q: Apr. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=934.603 + 0
=934.603

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Apr. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 5.36% mean?
Hovnanian Enterprises (HOVVB) has a Effective Interest Rate on Debt % of 5.36% as of Apr. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Hovnanian Enterprises and its competitors.
Is Hovnanian Enterprises' Effective Interest Rate on Debt % too high?
Hovnanian Enterprises' current Effective Interest Rate on Debt % is 5.36%. Overall, Hovnanian Enterprises has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hovnanian Enterprises' Effective Interest Rate on Debt % compare to BZH and LEGH?
Hovnanian Enterprises' Effective Interest Rate on Debt % of 5.36% can be compared against companies in the Homebuilding & Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Homebuilding & Construction company?
A good Effective Interest Rate on Debt % depends on the Homebuilding & Construction industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Hovnanian Enterprises and its competitors. Hovnanian Enterprises's current Effective Interest Rate on Debt % is 5.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hovnanian Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Hovnanian Enterprises (HOVVB) is currently considered Fairly Valued. The stock's GF Value™ is $112.49, compared to a current price of $110.00 — trading 2.2% below its estimated fair value. The current Effective Interest Rate on Debt % is 5.36%. Hovnanian Enterprises' overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Hovnanian Enterprises (HOVVB), the current Effective Interest Rate on Debt % is 5.36% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hovnanian Enterprises (HOVVB) Overvalued in 2026?

Based on GuruFocus' analysis, Hovnanian Enterprises stock appears to be undervalued. The current stock price of $110.00 is trading 2.2% below its estimated GF Value™ of $112.49. GuruFocus considers Hovnanian Enterprises to be Fairly Valued.

Key valuation signals for HOVVB:

  • Effective Interest Rate on Debt %: 5.36%
  • GF Value™: $112.49 vs. price of $110.00 (2.2% below fair value)
  • GF Score™: 70/100 with 7 warning signs

No single metric tells the full story. See the HOVVB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hovnanian Enterprises Business Description

Other Exchanges HOV:USAHOVNP.PFD:USA
Address 90 Matawan Road, Fifth Floor, Matawan, NJ, USA, 07747
Hovnanian Enterprises Inc conducts all of its homebuilding and financial services operations. The company designs, constructs, markets, and sells single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle homes in planned residential developments. It has two distinct operations: homebuilding and financial services. Its homebuilding operations are divided geographically into three segments: Northeast, which includes Delaware, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia; Southeast, which includes Florida, Georgia, and South Carolina; and West, which includes Arizona, California, and Texas. The firm generates maximum revenue from the West Segment.
70GF Score

Get the complete analysis for HOVVB

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$110.00
Price
$112.49
GF Value