Intrinsic value of Diana Shipping - DSX

Previous Close

$4.38

  Intrinsic Value

$1.63

stock screener

  Rating & Target

str. sell

-63%

Previous close

$4.38

 
Intrinsic value

$1.63

 
Up/down potential

-63%

 
Rating

str. sell

We calculate the intrinsic value of DSX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -27.85
  41.70
  38.03
  34.73
  31.75
  29.08
  26.67
  24.50
  22.55
  20.80
  19.22
  17.80
  16.52
  15.37
  14.33
  13.40
  12.56
  11.80
  11.12
  10.51
  9.96
  9.46
  9.02
  8.61
  8.25
  7.93
  7.63
  7.37
  7.13
  6.92
  6.73
Revenue, $m
  114
  230
  317
  427
  562
  726
  920
  1,145
  1,403
  1,695
  2,021
  2,380
  2,774
  3,200
  3,658
  4,148
  4,669
  5,220
  5,801
  6,410
  7,049
  7,715
  8,411
  9,136
  9,890
  10,674
  11,488
  12,335
  13,215
  14,130
  15,081
Variable operating expenses, $m
 
  407
  562
  757
  997
  1,287
  1,630
  2,030
  2,488
  3,005
  3,583
  4,220
  4,918
  5,673
  6,486
  7,355
  8,278
  9,255
  10,285
  11,365
  12,497
  13,679
  14,913
  16,197
  17,534
  18,924
  20,369
  21,870
  23,431
  25,052
  26,738
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  203
  407
  562
  757
  997
  1,287
  1,630
  2,030
  2,488
  3,005
  3,583
  4,220
  4,918
  5,673
  6,486
  7,355
  8,278
  9,255
  10,285
  11,365
  12,497
  13,679
  14,913
  16,197
  17,534
  18,924
  20,369
  21,870
  23,431
  25,052
  26,738
Operating income, $m
  -88
  -177
  -245
  -330
  -435
  -561
  -711
  -885
  -1,085
  -1,310
  -1,562
  -1,840
  -2,144
  -2,473
  -2,828
  -3,207
  -3,609
  -4,035
  -4,484
  -4,955
  -5,449
  -5,964
  -6,502
  -7,062
  -7,645
  -8,251
  -8,881
  -9,535
  -10,215
  -10,922
  -11,657
EBITDA, $m
  -6
  3
  5
  6
  8
  11
  13
  17
  20
  25
  30
  35
  40
  47
  53
  61
  68
  76
  85
  94
  103
  113
  123
  133
  144
  156
  168
  180
  193
  206
  220
Interest expense (income), $m
  19
  32
  46
  65
  87
  115
  149
  190
  236
  290
  350
  418
  492
  574
  662
  757
  859
  967
  1,081
  1,201
  1,328
  1,460
  1,598
  1,742
  1,892
  2,049
  2,211
  2,380
  2,556
  2,738
  2,928
Earnings before tax, $m
  -164
  -210
  -291
  -395
  -522
  -677
  -860
  -1,075
  -1,321
  -1,600
  -1,912
  -2,258
  -2,636
  -3,047
  -3,490
  -3,964
  -4,468
  -5,002
  -5,565
  -6,156
  -6,776
  -7,424
  -8,100
  -8,804
  -9,537
  -10,299
  -11,092
  -11,915
  -12,771
  -13,660
  -14,585
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -164
  -210
  -291
  -395
  -522
  -677
  -860
  -1,075
  -1,321
  -1,600
  -1,912
  -2,258
  -2,636
  -3,047
  -3,490
  -3,964
  -4,468
  -5,002
  -5,565
  -6,156
  -6,776
  -7,424
  -8,100
  -8,804
  -9,537
  -10,299
  -11,092
  -11,915
  -12,771
  -13,660
  -14,585

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  98
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,669
  1,766
  2,437
  3,284
  4,326
  5,585
  7,074
  8,807
  10,794
  13,039
  15,545
  18,311
  21,335
  24,614
  28,140
  31,910
  35,917
  40,155
  44,620
  49,309
  54,219
  59,350
  64,700
  70,274
  76,073
  82,104
  88,372
  94,886
  101,656
  108,691
  116,004
Adjusted assets (=assets-cash), $m
  1,571
  1,766
  2,437
  3,284
  4,326
  5,585
  7,074
  8,807
  10,794
  13,039
  15,545
  18,311
  21,335
  24,614
  28,140
  31,910
  35,917
  40,155
  44,620
  49,309
  54,219
  59,350
  64,700
  70,274
  76,073
  82,104
  88,372
  94,886
  101,656
  108,691
  116,004
Revenue / Adjusted assets
  0.073
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
  0.130
Average production assets, $m
  1,492
  1,808
  2,496
  3,362
  4,430
  5,718
  7,243
  9,018
  11,052
  13,350
  15,916
  18,748
  21,845
  25,201
  28,812
  32,672
  36,774
  41,114
  45,686
  50,487
  55,514
  60,767
  66,245
  71,952
  77,890
  84,065
  90,483
  97,152
  104,083
  111,286
  118,775
Working capital, $m
  37
  -3
  -5
  -6
  -8
  -11
  -14
  -17
  -21
  -25
  -30
  -36
  -42
  -48
  -55
  -62
  -70
  -78
  -87
  -96
  -106
  -116
  -126
  -137
  -148
  -160
  -172
  -185
  -198
  -212
  -226
Total debt, $m
  598
  861
  1,196
  1,618
  2,139
  2,766
  3,510
  4,375
  5,366
  6,486
  7,736
  9,117
  10,626
  12,262
  14,022
  15,903
  17,902
  20,017
  22,245
  24,585
  27,035
  29,595
  32,265
  35,046
  37,940
  40,950
  44,077
  47,328
  50,706
  54,216
  57,866
Total liabilities, $m
  612
  881
  1,216
  1,639
  2,159
  2,787
  3,530
  4,395
  5,386
  6,506
  7,757
  9,137
  10,646
  12,282
  14,042
  15,923
  17,922
  20,037
  22,266
  24,605
  27,056
  29,615
  32,285
  35,067
  37,961
  40,970
  44,098
  47,348
  50,726
  54,237
  57,886
Total equity, $m
  1,057
  885
  1,221
  1,645
  2,168
  2,798
  3,544
  4,413
  5,408
  6,532
  7,788
  9,174
  10,689
  12,331
  14,098
  15,987
  17,994
  20,118
  22,355
  24,704
  27,164
  29,734
  32,415
  35,207
  38,113
  41,134
  44,275
  47,538
  50,929
  54,454
  58,118
Total liabilities and equity, $m
  1,669
  1,766
  2,437
  3,284
  4,327
  5,585
  7,074
  8,808
  10,794
  13,038
  15,545
  18,311
  21,335
  24,613
  28,140
  31,910
  35,916
  40,155
  44,621
  49,309
  54,220
  59,349
  64,700
  70,274
  76,074
  82,104
  88,373
  94,886
  101,655
  108,691
  116,004
Debt-to-equity ratio
  0.566
  0.970
  0.980
  0.980
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  0.990
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
  1.000
Adjusted equity ratio
  0.610
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501
  0.501

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -164
  -210
  -291
  -395
  -522
  -677
  -860
  -1,075
  -1,321
  -1,600
  -1,912
  -2,258
  -2,636
  -3,047
  -3,490
  -3,964
  -4,468
  -5,002
  -5,565
  -6,156
  -6,776
  -7,424
  -8,100
  -8,804
  -9,537
  -10,299
  -11,092
  -11,915
  -12,771
  -13,660
  -14,585
Depreciation, amort., depletion, $m
  82
  181
  250
  336
  443
  572
  724
  902
  1,105
  1,335
  1,592
  1,875
  2,184
  2,520
  2,881
  3,267
  3,677
  4,111
  4,569
  5,049
  5,551
  6,077
  6,625
  7,195
  7,789
  8,406
  9,048
  9,715
  10,408
  11,129
  11,877
Funds from operations, $m
  -25
  -29
  -42
  -58
  -79
  -105
  -136
  -173
  -216
  -265
  -321
  -383
  -452
  -527
  -609
  -697
  -791
  -890
  -996
  -1,108
  -1,225
  -1,347
  -1,475
  -1,609
  -1,748
  -1,893
  -2,044
  -2,200
  -2,363
  -2,532
  -2,708
Change in working capital, $m
  -4
  -1
  -1
  -2
  -2
  -2
  -3
  -3
  -4
  -4
  -5
  -5
  -6
  -6
  -7
  -7
  -8
  -8
  -9
  -9
  -10
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -13
  -14
  -14
Cash from operations, $m
  -21
  -28
  -41
  -57
  -77
  -102
  -133
  -169
  -212
  -261
  -316
  -378
  -446
  -521
  -602
  -689
  -783
  -882
  -988
  -1,099
  -1,215
  -1,337
  -1,465
  -1,598
  -1,737
  -1,881
  -2,031
  -2,187
  -2,350
  -2,518
  -2,693
Maintenance CAPEX, $m
  0
  -128
  -181
  -250
  -336
  -443
  -572
  -724
  -902
  -1,105
  -1,335
  -1,592
  -1,875
  -2,184
  -2,520
  -2,881
  -3,267
  -3,677
  -4,111
  -4,569
  -5,049
  -5,551
  -6,077
  -6,625
  -7,195
  -7,789
  -8,406
  -9,048
  -9,715
  -10,408
  -11,129
New CAPEX, $m
  -51
  -533
  -688
  -867
  -1,068
  -1,288
  -1,525
  -1,775
  -2,034
  -2,299
  -2,566
  -2,832
  -3,097
  -3,356
  -3,611
  -3,860
  -4,102
  -4,340
  -4,572
  -4,801
  -5,027
  -5,253
  -5,479
  -5,706
  -5,938
  -6,175
  -6,418
  -6,670
  -6,931
  -7,203
  -7,488
Cash from investing activities, $m
  -42
  -661
  -869
  -1,117
  -1,404
  -1,731
  -2,097
  -2,499
  -2,936
  -3,404
  -3,901
  -4,424
  -4,972
  -5,540
  -6,131
  -6,741
  -7,369
  -8,017
  -8,683
  -9,370
  -10,076
  -10,804
  -11,556
  -12,331
  -13,133
  -13,964
  -14,824
  -15,718
  -16,646
  -17,611
  -18,617
Free cash flow, $m
  -63
  -689
  -909
  -1,173
  -1,481
  -1,834
  -2,230
  -2,669
  -3,147
  -3,664
  -4,217
  -4,802
  -5,417
  -6,062
  -6,733
  -7,430
  -8,152
  -8,899
  -9,671
  -10,468
  -11,291
  -12,141
  -13,020
  -13,929
  -14,870
  -15,845
  -16,856
  -17,905
  -18,996
  -20,130
  -21,310
Issuance/(repayment) of debt, $m
  -3
  259
  335
  422
  520
  628
  743
  865
  991
  1,120
  1,250
  1,380
  1,509
  1,636
  1,760
  1,881
  1,999
  2,115
  2,228
  2,340
  2,450
  2,560
  2,670
  2,781
  2,894
  3,009
  3,128
  3,251
  3,378
  3,511
  3,649
Issuance/(repurchase) of shares, $m
  0
  470
  628
  819
  1,045
  1,307
  1,606
  1,943
  2,316
  2,725
  3,168
  3,644
  4,152
  4,690
  5,257
  5,852
  6,475
  7,125
  7,802
  8,506
  9,236
  9,994
  10,781
  11,596
  12,443
  13,321
  14,232
  15,179
  16,162
  17,185
  18,249
Cash from financing (excl. dividends), $m  
  -5
  729
  963
  1,241
  1,565
  1,935
  2,349
  2,808
  3,307
  3,845
  4,418
  5,024
  5,661
  6,326
  7,017
  7,733
  8,474
  9,240
  10,030
  10,846
  11,686
  12,554
  13,451
  14,377
  15,337
  16,330
  17,360
  18,430
  19,540
  20,696
  21,898
Total cash flow (excl. dividends), $m
  -68
  40
  54
  68
  84
  101
  120
  139
  160
  181
  202
  223
  243
  264
  284
  303
  322
  341
  359
  377
  395
  413
  431
  448
  467
  485
  504
  524
  545
  566
  588
Retained Cash Flow (-), $m
  161
  -470
  -628
  -819
  -1,045
  -1,307
  -1,606
  -1,943
  -2,316
  -2,725
  -3,168
  -3,644
  -4,152
  -4,690
  -5,257
  -5,852
  -6,475
  -7,125
  -7,802
  -8,506
  -9,236
  -9,994
  -10,781
  -11,596
  -12,443
  -13,321
  -14,232
  -15,179
  -16,162
  -17,185
  -18,249
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  8
  12
  16
  22
  29
  37
  47
  58
  72
  86
  103
  121
  141
  163
  187
  212
  238
  266
  296
  327
  359
  393
  429
  466
  504
  544
  586
  629
  674
  721
Cash available for distribution, $m
 
  -429
  -574
  -751
  -961
  -1,206
  -1,487
  -1,804
  -2,156
  -2,544
  -2,966
  -3,421
  -3,908
  -4,426
  -4,973
  -5,549
  -6,153
  -6,784
  -7,443
  -8,128
  -8,841
  -9,581
  -10,350
  -11,148
  -11,976
  -12,836
  -13,728
  -14,655
  -15,618
  -16,619
  -17,661
Discount rate, %
 
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
 
  -395
  -484
  -574
  -660
  -737
  -801
  -848
  -873
  -877
  -860
  -822
  -767
  -698
  -621
  -538
  -455
  -376
  -302
  -237
  -180
  -134
  -96
  -67
  -46
  -30
  -19
  -12
  -7
  -4
  -2
Current shareholders' claim on cash, %
  100
  48.2
  23.9
  12.2
  6.4
  3.4
  1.9
  1.1
  0.6
  0.4
  0.2
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Diana Shipping Inc. is a holding company. The Company is a provider of shipping transportation services. The Company specializes in the ownership of dry bulk vessels. As of February 16, 2017, the Company's operating fleet consisted of 48 dry bulk carriers, of which 23 were Panamax, four were Kamsarmax, three were Post-Panamax, 14 were Capesize and four were Newcastlemax vessels, having a combined carrying capacity of approximately 5.7 million deadweight tonnage (dwt). As of February 16, 2017, the Company's fleet included Danae, Dione, Nirefs, Alcyon, Triton, Thetis, Protefs, Calipso, Clio, Erato, Coronis, Melite, Leto, Artemis, Selina, Atalandi, Maia, Medusa, Norfolk, Aliki, Semirio, Boston, Seattle, Santa Barbara, New Orleans, Los Angeles, San Francisco and Newport News. The Company charters its dry bulk carriers to customers primarily pursuant to time charters.

FINANCIAL RATIOS  of  Diana Shipping (DSX)

Valuation Ratios
P/E Ratio -2.3
Price to Sales 3.3
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow -17.7
Price to Free Cash Flow -5.2
Growth Rates
Sales Growth Rate -27.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -67.3%
Cap. Spend. - 3 Yr. Gr. Rate -23.8%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 50.4%
Total Debt to Equity 56.6%
Interest Coverage -8
Management Effectiveness
Return On Assets -8.3%
Ret/ On Assets - 3 Yr. Avg. -3.8%
Return On Total Capital -9.4%
Ret/ On T. Cap. - 3 Yr. Avg. -4.6%
Return On Equity -14.4%
Return On Equity - 3 Yr. Avg. -6.8%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 12.3%
Gross Margin - 3 Yr. Avg. 30.3%
EBITDA Margin -55.3%
EBITDA Margin - 3 Yr. Avg. -0.3%
Operating Margin -78.1%
Oper. Margin - 3 Yr. Avg. -39.3%
Pre-Tax Margin -143.9%
Pre-Tax Margin - 3 Yr. Avg. -63.6%
Net Profit Margin -143.9%
Net Profit Margin - 3 Yr. Avg. -63.6%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio -3.7%

DSX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DSX stock intrinsic value calculation we used $162 million for the last fiscal year's total revenue generated by Diana Shipping. The default revenue input number comes from 2016 income statement of Diana Shipping. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our DSX stock valuation model: a) initial revenue growth rate of 41.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.5%, whose default value for DSX is calculated based on our internal credit rating of Diana Shipping, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Diana Shipping.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of DSX stock the variable cost ratio is equal to 177.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for DSX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Diana Shipping.

Corporate tax rate of 27% is the nominal tax rate for Diana Shipping. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the DSX stock is equal to 5.1%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for DSX are equal to 787.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Diana Shipping operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for DSX is equal to -1.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $625 million for Diana Shipping - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 96 million for Diana Shipping is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Diana Shipping at the current share price and the inputted number of shares is $0.4 billion.

RELATED COMPANIES Price Int.Val. Rating
SHIP Seanergy Marit 0.920 6.60  str.buy
ESEA Euroseas 1.63 1.69  sell
SBLK Star Bulk Carr 12.52 4.32  str.sell
GLBS Globus Maritim 0.440 3.67  str.buy

COMPANY NEWS

▶ Diana Shipping: 1Q Earnings Snapshot   [07:28AM  Associated Press]
▶ Better Buy: Seaspan Corporation vs. Diana Shipping Inc   [Mar-12-18 11:32AM  Motley Fool]
▶ What Does Diana Shipping Incs (NYSE:DSX) Share Price Indicate?   [Feb-22-18 09:23AM  Simply Wall St.]
▶ Diana Shipping reports 4Q loss   [08:51AM  Associated Press]
▶ Better Buy: Seaspan Corporation vs. Diana Shipping Inc.   [Dec-12-17 04:32PM  Motley Fool]
▶ Diana Shipping reports 3Q loss   [Nov-21-17 08:13AM  Associated Press]
▶ Should You Buy Diana Shipping Inc (DSX)?   [06:49AM  Simply Wall St.]
▶ Diana Shipping reports 2Q loss   [Jul-26-17 09:56PM  Associated Press]
Financial statements of DSX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.