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TOP Ships Inc. (TOPS) — WACC Analysis

WACC Breakdown

TOP Ships Inc. (TOPS) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 9.2%, derived from a beta of 1.09 and a risk-free rate of 4.7%. The after-tax cost of debt is 8.5%. The capital structure is 2.0% equity and 98.0% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of TOP Ships Inc..

Investors can compare TOPS's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 1.09 reflects the stock's volatility relative to the broader market.

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VALUATION

TOPS WACC: 8.55% for TOP Ships Inc.

Current inputs imply a 9.15% cost of equity and a 10.81% 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

TOP Ships Inc. Common Stock (TOPS) WACC Results
Weighted Average Cost of Capital
8.55%
Cost of Equity
9.15%
Risk-Free Rate4.67%
Beta1.09
Market Risk Premium4.23%
Cost of Debt
8.54%
Pre-Tax Cost of Debt10.81%
Tax Rate21.00%
Tax Shield2.27%
Capital Structure
Equity: 1.98%($4.37M)
Debt: 98.02%($216.61M)
Equity Component
0.18%
1.98% × 9.15%
Debt Component
8.37%
98.02% × 8.54%

TOP Ships Inc. (TOPS) WACC in context

TOP Ships Inc. (TOPS) currently screens with an estimated WACC of 8.55%. That blends a 9.15% cost of equity, a 10.81% pre-tax cost of debt, and a 1.98% 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 TOPS WACC implies

A 8.55% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates TOPS

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.09 and equity accounts for 1.98% 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.

TOPS WACC: 8.55% — TOP Ships Inc. Cost of Capital (August 2026) | DeepViews