Intrinsic value of Golden Ocean Group - GOGL

Previous Close

$8.16

  Intrinsic Value

$2.71

stock screener

  Rating & Target

str. sell

-67%

  Value-price divergence*

-28%

Previous close

$8.16

 
Intrinsic value

$2.71

 
Up/down potential

-67%

 
Rating

str. sell

 
Value-price divergence*

-28%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of GOGL 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

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 0.9

 

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, %
  35.79
  35.80
  32.72
  29.95
  27.45
  25.21
  23.19
  21.37
  19.73
  18.26
  16.93
  15.74
  14.67
  13.70
  12.83
  12.05
  11.34
  10.71
  10.14
  9.62
  9.16
  8.74
  8.37
  8.03
  7.73
  7.46
  7.21
  6.99
  6.79
  6.61
  6.45
Revenue, $m
  258
  350
  465
  604
  770
  964
  1,188
  1,442
  1,726
  2,041
  2,387
  2,763
  3,168
  3,602
  4,064
  4,553
  5,070
  5,613
  6,182
  6,777
  7,397
  8,044
  8,717
  9,418
  10,146
  10,902
  11,688
  12,505
  13,355
  14,238
  15,156
Variable operating expenses, $m
 
  682
  905
  1,176
  1,499
  1,877
  2,312
  2,806
  3,359
  3,972
  4,645
  5,376
  6,165
  7,009
  7,908
  8,861
  9,866
  10,922
  12,030
  13,187
  14,395
  15,654
  16,964
  18,327
  19,744
  21,216
  22,746
  24,336
  25,988
  27,707
  29,494
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
  338
  682
  905
  1,176
  1,499
  1,877
  2,312
  2,806
  3,359
  3,972
  4,645
  5,376
  6,165
  7,009
  7,908
  8,861
  9,866
  10,922
  12,030
  13,187
  14,395
  15,654
  16,964
  18,327
  19,744
  21,216
  22,746
  24,336
  25,988
  27,707
  29,494
Operating income, $m
  -80
  -331
  -440
  -572
  -729
  -912
  -1,124
  -1,364
  -1,633
  -1,931
  -2,258
  -2,614
  -2,997
  -3,407
  -3,844
  -4,308
  -4,796
  -5,310
  -5,848
  -6,411
  -6,998
  -7,610
  -8,247
  -8,909
  -9,598
  -10,314
  -11,057
  -11,830
  -12,634
  -13,469
  -14,338
EBITDA, $m
  -17
  -246
  -327
  -424
  -541
  -677
  -834
  -1,013
  -1,213
  -1,434
  -1,677
  -1,941
  -2,225
  -2,530
  -2,855
  -3,199
  -3,562
  -3,943
  -4,343
  -4,761
  -5,197
  -5,651
  -6,124
  -6,616
  -7,127
  -7,659
  -8,211
  -8,785
  -9,382
  -10,002
  -10,647
Interest expense (income), $m
  38
  40
  55
  73
  96
  122
  153
  189
  230
  276
  327
  382
  443
  508
  578
  652
  731
  814
  902
  993
  1,089
  1,189
  1,293
  1,401
  1,514
  1,631
  1,753
  1,880
  2,011
  2,148
  2,290
Earnings before tax, $m
  -128
  -371
  -495
  -645
  -824
  -1,034
  -1,277
  -1,553
  -1,863
  -2,207
  -2,585
  -2,996
  -3,440
  -3,915
  -4,422
  -4,960
  -5,527
  -6,124
  -6,749
  -7,404
  -8,087
  -8,799
  -9,540
  -10,311
  -11,112
  -11,945
  -12,810
  -13,710
  -14,645
  -15,617
  -16,628
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
  -128
  -371
  -495
  -645
  -824
  -1,034
  -1,277
  -1,553
  -1,863
  -2,207
  -2,585
  -2,996
  -3,440
  -3,915
  -4,422
  -4,960
  -5,527
  -6,124
  -6,749
  -7,404
  -8,087
  -8,799
  -9,540
  -10,311
  -11,112
  -11,945
  -12,810
  -13,710
  -14,645
  -15,617
  -16,628

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  219
  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
  2,362
  2,920
  3,875
  5,036
  6,418
  8,036
  9,899
  12,014
  14,385
  17,011
  19,892
  23,023
  26,399
  30,015
  33,866
  37,945
  42,249
  46,773
  51,514
  56,471
  61,644
  67,035
  72,645
  78,481
  84,548
  90,852
  97,404
  104,212
  111,289
  118,648
  126,301
Adjusted assets (=assets-cash), $m
  2,143
  2,920
  3,875
  5,036
  6,418
  8,036
  9,899
  12,014
  14,385
  17,011
  19,892
  23,023
  26,399
  30,015
  33,866
  37,945
  42,249
  46,773
  51,514
  56,471
  61,644
  67,035
  72,645
  78,481
  84,548
  90,852
  97,404
  104,212
  111,289
  118,648
  126,301
Revenue / Adjusted assets
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
  0.120
Average production assets, $m
  880
  1,194
  1,585
  2,060
  2,625
  3,287
  4,049
  4,915
  5,885
  6,959
  8,137
  9,418
  10,799
  12,279
  13,854
  15,523
  17,283
  19,134
  21,073
  23,101
  25,217
  27,423
  29,718
  32,105
  34,587
  37,166
  39,846
  42,631
  45,526
  48,536
  51,667
Working capital, $m
  256
  57
  76
  98
  126
  157
  194
  235
  281
  333
  389
  450
  516
  587
  662
  742
  826
  915
  1,008
  1,105
  1,206
  1,311
  1,421
  1,535
  1,654
  1,777
  1,905
  2,038
  2,177
  2,321
  2,470
Total debt, $m
  1,076
  1,477
  1,976
  2,582
  3,303
  4,148
  5,120
  6,224
  7,462
  8,833
  10,337
  11,971
  13,733
  15,621
  17,631
  19,761
  22,007
  24,368
  26,843
  29,431
  32,131
  34,945
  37,874
  40,920
  44,087
  47,378
  50,798
  54,352
  58,046
  61,887
  65,882
Total liabilities, $m
  1,123
  1,524
  2,023
  2,629
  3,350
  4,195
  5,167
  6,271
  7,509
  8,880
  10,384
  12,018
  13,780
  15,668
  17,678
  19,808
  22,054
  24,415
  26,890
  29,478
  32,178
  34,992
  37,921
  40,967
  44,134
  47,425
  50,845
  54,399
  58,093
  61,934
  65,929
Total equity, $m
  1,239
  1,396
  1,852
  2,407
  3,068
  3,841
  4,732
  5,743
  6,876
  8,131
  9,508
  11,005
  12,619
  14,347
  16,188
  18,138
  20,195
  22,357
  24,624
  26,993
  29,466
  32,043
  34,725
  37,514
  40,414
  43,427
  46,559
  49,813
  53,196
  56,714
  60,372
Total liabilities and equity, $m
  2,362
  2,920
  3,875
  5,036
  6,418
  8,036
  9,899
  12,014
  14,385
  17,011
  19,892
  23,023
  26,399
  30,015
  33,866
  37,946
  42,249
  46,772
  51,514
  56,471
  61,644
  67,035
  72,646
  78,481
  84,548
  90,852
  97,404
  104,212
  111,289
  118,648
  126,301
Debt-to-equity ratio
  0.868
  1.060
  1.070
  1.070
  1.080
  1.080
  1.080
  1.080
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
  1.090
Adjusted equity ratio
  0.476
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478
  0.478

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -128
  -371
  -495
  -645
  -824
  -1,034
  -1,277
  -1,553
  -1,863
  -2,207
  -2,585
  -2,996
  -3,440
  -3,915
  -4,422
  -4,960
  -5,527
  -6,124
  -6,749
  -7,404
  -8,087
  -8,799
  -9,540
  -10,311
  -11,112
  -11,945
  -12,810
  -13,710
  -14,645
  -15,617
  -16,628
Depreciation, amort., depletion, $m
  63
  85
  113
  147
  188
  235
  289
  351
  420
  497
  581
  673
  771
  877
  990
  1,109
  1,235
  1,367
  1,505
  1,650
  1,801
  1,959
  2,123
  2,293
  2,470
  2,655
  2,846
  3,045
  3,252
  3,467
  3,691
Funds from operations, $m
  -24
  -286
  -381
  -498
  -637
  -800
  -988
  -1,202
  -1,443
  -1,710
  -2,004
  -2,323
  -2,668
  -3,038
  -3,433
  -3,851
  -4,293
  -4,757
  -5,244
  -5,754
  -6,286
  -6,840
  -7,417
  -8,017
  -8,641
  -9,290
  -9,964
  -10,665
  -11,393
  -12,150
  -12,937
Change in working capital, $m
  -1
  15
  19
  23
  27
  32
  36
  41
  46
  51
  56
  61
  66
  71
  75
  80
  84
  88
  93
  97
  101
  105
  110
  114
  119
  123
  128
  133
  138
  144
  150
Cash from operations, $m
  -23
  -301
  -400
  -520
  -664
  -831
  -1,024
  -1,244
  -1,489
  -1,762
  -2,060
  -2,384
  -2,734
  -3,109
  -3,508
  -3,931
  -4,377
  -4,846
  -5,337
  -5,851
  -6,387
  -6,945
  -7,527
  -8,131
  -8,760
  -9,413
  -10,092
  -10,798
  -11,531
  -12,294
  -13,087
Maintenance CAPEX, $m
  0
  -63
  -85
  -113
  -147
  -188
  -235
  -289
  -351
  -420
  -497
  -581
  -673
  -771
  -877
  -990
  -1,109
  -1,235
  -1,367
  -1,505
  -1,650
  -1,801
  -1,959
  -2,123
  -2,293
  -2,470
  -2,655
  -2,846
  -3,045
  -3,252
  -3,467
New CAPEX, $m
  -268
  -315
  -391
  -475
  -566
  -662
  -762
  -865
  -970
  -1,074
  -1,178
  -1,281
  -1,381
  -1,479
  -1,575
  -1,669
  -1,761
  -1,851
  -1,940
  -2,028
  -2,116
  -2,205
  -2,295
  -2,387
  -2,482
  -2,579
  -2,680
  -2,785
  -2,895
  -3,010
  -3,131
Cash from investing activities, $m
  -175
  -378
  -476
  -588
  -713
  -850
  -997
  -1,154
  -1,321
  -1,494
  -1,675
  -1,862
  -2,054
  -2,250
  -2,452
  -2,659
  -2,870
  -3,086
  -3,307
  -3,533
  -3,766
  -4,006
  -4,254
  -4,510
  -4,775
  -5,049
  -5,335
  -5,631
  -5,940
  -6,262
  -6,598
Free cash flow, $m
  -198
  -679
  -876
  -1,108
  -1,376
  -1,681
  -2,021
  -2,398
  -2,810
  -3,256
  -3,735
  -4,246
  -4,788
  -5,360
  -5,960
  -6,589
  -7,246
  -7,931
  -8,643
  -9,384
  -10,153
  -10,952
  -11,781
  -12,641
  -13,535
  -14,463
  -15,427
  -16,429
  -17,471
  -18,556
  -19,685
Issuance/(repayment) of debt, $m
  104
  406
  499
  606
  722
  845
  973
  1,104
  1,237
  1,371
  1,504
  1,634
  1,762
  1,888
  2,010
  2,130
  2,246
  2,361
  2,475
  2,588
  2,700
  2,814
  2,929
  3,046
  3,167
  3,291
  3,420
  3,554
  3,694
  3,841
  3,995
Issuance/(repurchase) of shares, $m
  205
  742
  951
  1,199
  1,485
  1,808
  2,168
  2,564
  2,996
  3,463
  3,962
  4,493
  5,054
  5,644
  6,263
  6,910
  7,584
  8,286
  9,016
  9,773
  10,560
  11,375
  12,222
  13,100
  14,012
  14,958
  15,942
  16,964
  18,027
  19,134
  20,286
Cash from financing (excl. dividends), $m  
  309
  1,148
  1,450
  1,805
  2,207
  2,653
  3,141
  3,668
  4,233
  4,834
  5,466
  6,127
  6,816
  7,532
  8,273
  9,040
  9,830
  10,647
  11,491
  12,361
  13,260
  14,189
  15,151
  16,146
  17,179
  18,249
  19,362
  20,518
  21,721
  22,975
  24,281
Total cash flow (excl. dividends), $m
  110
  469
  574
  697
  830
  972
  1,119
  1,270
  1,424
  1,577
  1,730
  1,880
  2,028
  2,172
  2,313
  2,450
  2,585
  2,717
  2,847
  2,977
  3,107
  3,237
  3,370
  3,505
  3,643
  3,786
  3,935
  4,089
  4,250
  4,419
  4,597
Retained Cash Flow (-), $m
  -80
  -742
  -951
  -1,199
  -1,485
  -1,808
  -2,168
  -2,564
  -2,996
  -3,463
  -3,962
  -4,493
  -5,054
  -5,644
  -6,263
  -6,910
  -7,584
  -8,286
  -9,016
  -9,773
  -10,560
  -11,375
  -12,222
  -13,100
  -14,012
  -14,958
  -15,942
  -16,964
  -18,027
  -19,134
  -20,286
Prev. year cash balance distribution, $m
 
  214
  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
 
  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 available for distribution, $m
 
  -58
  -377
  -502
  -655
  -836
  -1,049
  -1,294
  -1,573
  -1,885
  -2,232
  -2,612
  -3,026
  -3,472
  -3,950
  -4,460
  -5,000
  -5,569
  -6,168
  -6,796
  -7,453
  -8,138
  -8,852
  -9,595
  -10,368
  -11,172
  -12,007
  -12,875
  -13,777
  -14,715
  -15,689
Discount rate, %
 
  8.60
  9.03
  9.48
  9.96
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.42
  27.74
  29.12
  30.58
  32.11
  33.71
  35.40
PV of cash for distribution, $m
 
  -54
  -318
  -383
  -448
  -509
  -561
  -603
  -631
  -642
  -638
  -618
  -583
  -537
  -482
  -422
  -360
  -299
  -242
  -191
  -146
  -109
  -79
  -55
  -37
  -25
  -16
  -10
  -6
  -3
  -2
Current shareholders' claim on cash, %
  100
  51.0
  26.8
  14.4
  7.9
  4.5
  2.5
  1.5
  0.9
  0.5
  0.3
  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

Golden Ocean Group Limited, a shipping company, engages in the transportation of bulk commodities primarily in the Capesize, Panamax, and Supramax markets. It owns and operates a fleet of dry bulk carrier vessels, which transports bulk commodities, including ores, coal, grains, and fertilizers along worldwide shipping routes. Golden Ocean Group Limited owns and controls a fleet of 70 vessels, including newbuildings and vessels chartered in on long term time charter contracts. The company is based in Hamilton, Bermuda.

FINANCIAL RATIOS  of  Golden Ocean Group (GOGL)

Valuation Ratios
P/E Ratio -6.8
Price to Sales 3.4
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow -37.6
Price to Free Cash Flow -3
Growth Rates
Sales Growth Rate 35.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -48.4%
Cap. Spend. - 3 Yr. Gr. Rate 58.3%
Financial Strength
Quick Ratio 44
Current Ratio 0.6
LT Debt to Equity 86.4%
Total Debt to Equity 86.8%
Interest Coverage -2
Management Effectiveness
Return On Assets -4%
Ret/ On Assets - 3 Yr. Avg. -4.2%
Return On Total Capital -5.8%
Ret/ On T. Cap. - 3 Yr. Avg. -5.7%
Return On Equity -10.7%
Return On Equity - 3 Yr. Avg. -9.9%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 24%
Gross Margin - 3 Yr. Avg. 28.2%
EBITDA Margin -10.5%
EBITDA Margin - 3 Yr. Avg. -14%
Operating Margin -31%
Oper. Margin - 3 Yr. Avg. -35%
Pre-Tax Margin -49.6%
Pre-Tax Margin - 3 Yr. Avg. -49.8%
Net Profit Margin -49.6%
Net Profit Margin - 3 Yr. Avg. -49.8%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

GOGL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GOGL stock intrinsic value calculation we used $258 million for the last fiscal year's total revenue generated by Golden Ocean Group. The default revenue input number comes from 2016 income statement of Golden Ocean Group. 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 GOGL stock valuation model: a) initial revenue growth rate of 35.8% 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 8.6%, whose default value for GOGL is calculated based on our internal credit rating of Golden Ocean Group, 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 Golden Ocean Group.
    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 GOGL stock the variable cost ratio is equal to 194.6%.

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 GOGL 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 3.7% for Golden Ocean Group.

Corporate tax rate of 27% is the nominal tax rate for Golden Ocean Group. 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 GOGL stock is equal to 0%.

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 GOGL are equal to 340.9%.

Life of production assets of 14 years is the average useful life of capital assets used in Golden Ocean Group 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 GOGL is equal to 16.3%. 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 - $1239 million for Golden Ocean Group - 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 114.494 million for Golden Ocean Group 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 Golden Ocean Group at the current share price and the inputted number of shares is $0.9 billion.

RELATED COMPANIES Price Int.Val. Rating
SFL Ship Finance I 13.50 3.00  str.sell
SBLK Star Bulk Carr 10.90 4.54  str.sell
FRO Frontline 5.06 22.54  str.buy
SALT Scorpio Bulker 7.60 3.18  str.sell

COMPANY NEWS

▶ GOGL - Q2 2017 Presentation   [05:47AM  GlobeNewswire]
▶ GOGL - Second Quarter 2017 Results   [02:12AM  GlobeNewswire]
▶ GOGL - Notice of Annual General Meeting 2017   [Aug-11-17 11:50AM  GlobeNewswire]
▶ GOGL - Invitation to presentation of Q2 2017 Results   [Aug-10-17 10:46AM  GlobeNewswire]
▶ Facebook launches Watch to take on TV   [10:29AM  Yahoo Finance Video]
▶ GOGL - Delivery of dry bulk vessel   [Jul-20-17 10:31AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [Jul-17-17 10:27AM  GlobeNewswire]
▶ GOGL - 2017 Annual General Meeting   [Jul-13-17 03:34AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [Jul-11-17 09:46AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [Jun-21-17 10:32AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [10:31AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [Jun-19-17 10:58AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [Jun-13-17 10:12AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [Jun-01-17 11:06AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [11:06AM  GlobeNewswire]
▶ GOGL - Q1 2017 Presentation   [05:51AM  GlobeNewswire]
▶ GOGL - First Quarter 2017 Results   [02:31AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [May-23-17 09:02AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [May-22-17 09:31AM  GlobeNewswire]
▶ GOGL - Invitation to presentation of Q1 2017 Results   [May-18-17 05:36AM  GlobeNewswire]
▶ GOGL - Delivery of dry bulk vessel   [May-16-17 11:17AM  GlobeNewswire]
▶ GOGL - Delivery of two dry bulk vessels   [May-15-17 09:32AM  GlobeNewswire]
▶ GOGL: Delivery of dry bulk vessel   [06:05AM  GlobeNewswire]
▶ GOGL: Delivery of dry bulk vessel   [May-03-17 02:27PM  GlobeNewswire]
▶ GOGL: Delivery of two dry bulk vessels   [Apr-27-17 09:32AM  GlobeNewswire]
▶ GOGL - Filing of 2016 Annual Report on Form 20-F   [Apr-04-17 07:52PM  GlobeNewswire]
▶ Shipping stocks rocket after analyst calls the bottom   [Mar-29-17 07:36AM  MarketWatch]
▶ Why Dry Bulk Shipping Stocks Popped Today   [12:22PM  Motley Fool]
▶ Why Dry Bulk Shipping Stocks Popped Today   [12:22PM  at Motley Fool]
▶ GOGL: Approval and publication of prospectus   [Mar-27-17 12:19PM  GlobeNewswire]
▶ GOGL: Approval and publication of prospectus   [12:18PM  GlobeNewswire]
▶ GOGL - Equity offering: Issue of New Shares   [Mar-17-17 03:41AM  GlobeNewswire]
▶ GOGL - Equity offering: Issue of New Shares   [03:41AM  GlobeNewswire]
▶ [$$] SeaDrill slumps after Chapter 11 warning   [12:39PM  at Financial Times]
▶ GOGL - Q4 2016 Presentation   [04:58AM  GlobeNewswire]
▶ GOGL - Q4 2016 Presentation   [04:57AM  GlobeNewswire]
▶ GOGL - Fourth Quarter 2016 Results   [02:16AM  GlobeNewswire]
▶ GOGL - Fourth Quarter 2016 Results   [02:16AM  GlobeNewswire]
▶ [$$] Fredriksen vows to stay on to 'see through' shipping rescue   [Feb-05-17 05:27PM  at Financial Times]
Stock chart of GOGL Financial statements of GOGL
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

VALUATION THEORY       ASSET ALLOCATION

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

Copyright © X-FIN.com 2005-2017. All rigths reserved.