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 83th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 742.5% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Danaos Corp, consider:
The company's compound free cash flow growth rate over the past 4.97 years comes in at -0.01%; that's greater than only 24.18% of US stocks we're applying DCF forecasting to.
Danaos Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 6.65% of tickers in our DCF set.
As a business, Danaos Corp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than merely 0% of stocks generating 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 IIIN, KNOP, SWBI, FIX, and TRTN.
How I came up with the idea to look into Danaos I started to look into Danaos after listening to Dan Rasmussen (Verdad Capital) in his interview with Tobias Carlisle in one of his podcasts. Dan Rasmussen essentially pleaded for a private equity approach in investing, which implies buying medium...
Gasebu Private Investor on Seeking Alpha | September 22, 2020
Danaos (DAC) reported second-quarter earnings on August third, with a strong performance despite the macro environment and declining charter rates. The company's impact from COVID-19 and re-charters is overall likely to be minimal. Further, the company's shares remain quite cheap and the company has approved a buyback. Earnings Danaos' second-quarter...
Sunset Analysis on Seeking Alpha | August 13, 2020
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Danaos Corporation (NYSE: DAC), one of the world's largest independent owners of containerships, announced today that it will release its results for the second quarter ended June 30, 2020, after the close of the market in New York on Monday, August 3, 2020.