Champion HomesSKY +0.44%88 WACC % is 10.28% as of Jul. 04, 2026, which is 16% below its 10-year median of 12.27. GuruFocus rates SKY with a GF Score™ of 88/100 and a GF Value™ of $93.55 (Fairly Valued). The stock has 3 warning signs investors should review. Among 101 Homebuilding & Construction companies, Champion Homes ranks worse than 69.31% on this metric.
As of today (2026-07-04), Champion Homes's weighted average cost of capital is 10.28%%. Champion Homes's ROIC % is 15.68% (calculated using TTM income statement data).
Champion Homes generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
For a comprehensive WACC calculation, please access the WACC Calculator.
Champion Homes (NYSE:SKY) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Champion Homes's weighted average cost of capital is 10.28%%. Champion Homes's ROIC % is 15.68% (calculated using TTM income statement data).
Champion Homes generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
Champion Homes WACC % Historical Data
* Premium members only.
The historical data trend for Champion Homes's WACC % 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.
For the Residential Construction subindustry, Champion Homes's WACC %, along with its competitors' market caps and WACC % 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.
Champion Homes WACC % vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Champion Homes's WACC % distribution charts can be found below:
* The bar in red indicates where Champion Homes's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Champion Homes's market capitalization (E) is $4679.737 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Champion Homes's latest one-year quarterly average Book Value of Debt (D) is $123.8334 Mil.
a) weight of equity = E / (E + D) = 4679.737 / (4679.737 + 123.8334) = 0.9742
b) weight of debt = D / (E + D) = 123.8334 / (4679.737 + 123.8334) = 0.0258
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.485%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Champion Homes's beta is 0.9896.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.485% + 0.9896 * 6% = 10.4226%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Champion Homes's interest expense (positive number) was $7.548 Mil. Its total Book Value of Debt (D) is $123.8334 Mil.
Cost of Debt = 7.548 / 123.8334 = 6.0953%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 56.757 / 270.571 = 20.98%.
Champion Homes's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9742
*
10.4226%
+
0.0258
*
6.0953%
*
(1 - 20.98%)
=
10.28%
* 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.
Champion Homes (SKY) has a WACC % of 10.28% as of Jul. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Champion Homes and its competitors. This is 16% below median its historical median of 12.27. Over the past decade, Champion Homes' WACC % has ranged from 10.28 to 19.75. According to the industry distribution chart, Champion Homes ranks #70 out of 101 companies in the Homebuilding & Construction industry, placing it in the top 69.3%.
Is Champion Homes' WACC % too high?
Champion Homes' current WACC % of 10.28% is 16% below median its 10-year median of 12.27. Over the past 10 years, this metric has ranged from a low of 10.28 to a high of 19.75. The Homebuilding & Construction industry median WACC % is 8.22. Champion Homes' value of 10.28% is 25.1% above this industry median. Based on the distribution chart, Champion Homes ranks #70 out of 101 companies in the Homebuilding & Construction industry, which is below the industry midpoint. Overall, Champion Homes has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Champion Homes' WACC % compare to CVCO and MHO?
According to the Homebuilding & Construction industry distribution chart, Champion Homes ranks #70 out of 101 companies for WACC %. This places Champion Homes in the lower half of its industry. The industry median WACC % is 8.22. Champion Homes' value of 10.28% is 25.1% above this benchmark. Historically, Champion Homes' own WACC % has ranged from 10.28 to 19.75 over the past decade. While the company's 10-year median is 12.27 vs. the industry median of 8.22, Champion Homes has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good WACC % for a Homebuilding & Construction company?
The median WACC % among Homebuilding & Construction companies is 8.22, based on 101 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Champion Homes's current WACC % of 10.28% is 25.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Champion Homes and its competitors. For the Homebuilding & Construction industry, the median WACC % is 8.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Champion Homes's current WACC % is 10.28%, which is 16% below median its own 10-year median of 12.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Champion Homes stock overvalued right now?
Based on GuruFocus' analysis, Champion Homes (SKY) is currently considered Fairly Valued. The stock's GF Value™ is $93.55, compared to a current price of $85.25 — trading 8.9% below its estimated fair value. The current WACC % is 10.28%, which is 16% below median its 10-year median of 12.27 and 25.1% above the Homebuilding & Construction industry median of 8.22. Champion Homes' overall GF Score™ is 88/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Champion Homes (SKY), the current WACC % is 10.28% as of Jul. 04, 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 Champion Homes (SKY) Overvalued in 2026?
Based on GuruFocus' analysis, Champion Homes stock appears to be undervalued.
The current stock price of $85.25 is trading 8.9% below its estimated GF Value™ of $93.55.
GuruFocus considers Champion Homes to be Fairly Valued.
Key valuation signals for SKY:
WACC %: 10.28% (16% below median its 10-year median of 12.27)
GF Value™: $93.55 vs. price of $85.25 (8.9% below fair value)
Industry Position: 25.1% above the Homebuilding & Construction median (#70 of 101)
No single metric tells the full story. See the SKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Champion Homes Inc is a factory-built housing company in North America. The company is well positioned with an portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and other hospitality sectors. In addition to its core home building business, the company provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.
88GF Score
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