As of today (2026-06-25), Topsports International Holdings's weighted average cost of capital is 8%%. Topsports International Holdings's ROIC % is 11.44% (calculated using TTM income statement data).
Topsports International Holdings 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Topsports International Holdings (FRA:8NF) 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, Topsports International Holdings's weighted average cost of capital is 8%%. Topsports International Holdings's ROIC % is 11.44% (calculated using TTM income statement data).
Topsports International Holdings 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual 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 semi-annual average debt to get the simplified cost of debt.
Related Terms
Topsports International Holdings WACC % Historical Data
* 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 Apparel Retail subindustry, Topsports International Holdings'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.
Topsports International Holdings WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Topsports International Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Topsports International Holdings's WACC % falls into.
Topsports International Holdings WACC % Calculation
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, Topsports International Holdings's market capitalization (E) is €1424.830 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Feb. 2026, Topsports International Holdings's latest one-year semi-annual average Book Value of Debt (D) is €549.7463 Mil.
a) weight of equity = E / (E + D) = 1424.830 / (1424.830 + 549.7463) = 0.7216
b) weight of debt = D / (E + D) = 549.7463 / (1424.830 + 549.7463) = 0.2784
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 4.414%. 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. Topsports International Holdings's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.414% + 1 * 6% = 10.414%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Feb. 2026, Topsports International Holdings's interest expense (positive number) was €11.384 Mil. Its total Book Value of Debt (D) is €549.7463 Mil.
Cost of Debt = 11.384 / 549.7463 = 2.0708%.
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 = 29.13 / 181.93 = 16.01%.
* 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.
Topsports International Holdings (FRA:8NF) has a WACC % of 8% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Topsports International Holdings and its competitors. This is near median its historical median of 8.20. Over the past decade, Topsports International Holdings' WACC % has ranged from 3.95 to 11.08. According to the industry distribution chart, Topsports International Holdings ranks #728 out of 1143 companies in the Retail - Cyclical industry, placing it in the top 63.7%.
Is Topsports International Holdings' WACC % too high?
Topsports International Holdings' current WACC % of 8% is near median its 10-year median of 8.20. Over the past 10 years, this metric has ranged from a low of 3.95 to a high of 11.08. The Retail - Cyclical industry median WACC % is 7.58. Topsports International Holdings' value of 8% is 5.5% above this industry median. Based on the distribution chart, Topsports International Holdings ranks #728 out of 1143 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Topsports International Holdings has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Topsports International Holdings' WACC % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Topsports International Holdings ranks #728 out of 1143 companies for WACC %. This places Topsports International Holdings in the lower half of its industry. The industry median WACC % is 7.58. Topsports International Holdings' value of 8% is 5.5% above this benchmark. Historically, Topsports International Holdings' own WACC % has ranged from 3.95 to 11.08 over the past decade. While the company's 10-year median is 8.20 vs. the industry median of 7.58, Topsports International Holdings 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 Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.58, based on 1,143 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. Topsports International Holdings's current WACC % of 8% is 5.5% 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 Topsports International Holdings and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Topsports International Holdings's current WACC % is 8%, which is near median its own 10-year median of 8.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Topsports International Holdings stock overvalued right now?
Topsports International Holdings (FRA:8NF) has a current WACC % of 8%. The stock's GF Value™ is €0.35, compared to a current price of €0.22 — trading 37% below its estimated fair value. The current WACC % is 8%, which is near median its 10-year median of 8.20 and 5.5% above the Retail - Cyclical industry median of 7.58. Topsports International Holdings' overall GF Score™ is 84/100 with 6 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 Topsports International Holdings (FRA:8NF), the current WACC % is 8% as of Jun. 25, 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 Topsports International Holdings (FRA:8NF) Overvalued in 2026?
Based on GuruFocus' analysis, Topsports International Holdings stock appears to be undervalued.
The current stock price of €0.22 is trading 37% below its estimated GF Value™ of €0.35.
Key valuation signals for FRA:8NF:
WACC %: 8% (near median its 10-year median of 8.20)
GF Value™: €0.35 vs. price of €0.22 (37% below fair value)
Industry Position: 5.5% above the Retail - Cyclical median (#728 of 1143)
No single metric tells the full story. See the FRA:8NF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Topsports International Holdings Business Description
Topsports is the largest sportswear retailer in China, generating the majority of its revenue from selling products of international sportswear brands. The business operates as an intermediary between brand owners and consumers. The firm operates more than 4,000 stores directly as of the end of fiscal 2026, and most of these single-brand stores have been opened under the names of sportswear brands that it partners with, such as Nike and Adidas. Topsports also has partnerships with sportswear brands such as Puma, Li-Ning, Asics, and The North Face. While most of Topsports' sales take place in stores, the firm also operates online shops under the Topsports brand on major e-commerce platforms such as Alibaba and JD.com.
84GF Score
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