Frontline Ltd. owns and operates oil tankers and oil/bulk/ore carriers. The company provides seaborne transportation of crude oil and oil products. Its carriers transport crude oil from the Middle East Gulf to the Far East, Northern Europe, the Caribbean, and the Louisiana Offshore Oil Port, as well as Suezmax tankers trade in the Atlantic Basin, the Middle East, and Southeast Asia. The company was founded in 1948 and is based in Hamilton, Bermuda.
FRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FRO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Frontline Ltd ranked in the 76th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Frontline Ltd ended up being:
In the past 5.02 years, Frontline Ltd has a compound free cash flow growth rate of 0.52%; that's better than 75.07% of cash flow producing equities in the Energy sector, where it is classified.
43% of the company's capital comes from equity, which is greater than just 23.58% of stocks in our cash flow based forecasting set.
Frontline Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 22.31% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Frontline Ltd? See BOOM, SUN, CRC, HFC, and MPLX.
Frontline (FRO) -0.5% enters into an equity distribution with Morgan Stanley for sale of up to $100M common shares. Net proceeds will be used to opportunistically fund growth opportunities and for general corporate purposes. Source: Press Release...
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