Danaos Corporation engages in the ownership and operation of containerships, as well as chartering of its vessels to liner companies in Greece and internationally. The company was founded in 1972 and is based in Piraeus, Greece.
DAC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DAC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Danaos Corp ranked in the 93th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 3269.33%. As for the metrics that stood out in our discounted cash flow analysis of Danaos Corp, consider:
4% of the company's capital comes from equity, which is greater than only 1.61% of stocks in our cash flow based forecasting set.
Danaos Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 6. This value is greater than only 4.81% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DAC, try RYI, SPLP, SNDR, CCNC, and NM.
Container-ship lessors represent one of the most crowded segments in the U.S.-listed shipping arena – and one of the most highly leveraged to COVID-19.Such owners, known as "tonnage providers," lease vessels for varying lengths of time to liner companies, which use chartered ships to complement their owned fleets. If global consumer demand rebounds robustly, stocks of tonnage providers should surge. If there's an extended downturn, they face years of pain.Liners have heavily "blanked" (canceled) sailings to cut costs and prop up freight rates in the wake of lower consumer demand. The longer fleet capacity exceeds coronavirus-reduced demand, the more likely that liners will permanently reduce fleet size by letting expiring charters roll off without renewal, and possibly even seek to rene...