Intrinsic value of DryShips - DRYS

Previous Close

$5.71

  Intrinsic Value

$1.79

stock screener

  Rating & Target

str. sell

-69%

Previous close

$5.71

 
Intrinsic value

$1.79

 
Up/down potential

-69%

 
Rating

str. sell

We calculate the intrinsic value of DRYS 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 0001), $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 0.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  161
  249
  372
  540
  762
  1,048
  1,407
  1,847
  2,376
  3,002
  3,727
  4,557
  5,493
  6,535
  7,684
  8,939
  10,297
  11,756
  13,314
  14,969
  16,719
  18,561
  20,494
  22,518
  24,632
  26,836
  29,131
  31,519
  34,003
  36,584
Variable operating expenses, $m
  654
  1,011
  1,511
  2,193
  3,094
  4,253
  5,709
  7,496
  9,646
  12,184
  15,129
  18,497
  22,295
  26,527
  31,191
  36,282
  41,794
  47,718
  54,043
  60,760
  67,861
  75,338
  83,185
  91,400
  99,979
  108,926
  118,243
  127,937
  138,016
  148,492
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
  654
  1,011
  1,511
  2,193
  3,094
  4,253
  5,709
  7,496
  9,646
  12,184
  15,129
  18,497
  22,295
  26,527
  31,191
  36,282
  41,794
  47,718
  54,043
  60,760
  67,861
  75,338
  83,185
  91,400
  99,979
  108,926
  118,243
  127,937
  138,016
  148,492
Operating income, $m
  -493
  -762
  -1,139
  -1,653
  -2,332
  -3,205
  -4,303
  -5,650
  -7,270
  -9,182
  -11,402
  -13,940
  -16,802
  -19,992
  -23,507
  -27,344
  -31,498
  -35,962
  -40,728
  -45,791
  -51,142
  -56,777
  -62,691
  -68,882
  -75,348
  -82,090
  -89,112
  -96,418
  -104,014
  -111,909
EBITDA, $m
  -469
  -725
  -1,084
  -1,573
  -2,219
  -3,050
  -4,094
  -5,376
  -6,918
  -8,738
  -10,850
  -13,265
  -15,989
  -19,024
  -22,369
  -26,020
  -29,973
  -34,221
  -38,757
  -43,574
  -48,666
  -54,029
  -59,656
  -65,547
  -71,700
  -78,116
  -84,798
  -91,750
  -98,978
  -106,491
Interest expense (income), $m
  6
  26
  50
  84
  132
  197
  283
  394
  533
  704
  910
  1,153
  1,435
  1,757
  2,120
  2,525
  2,971
  3,458
  3,986
  4,552
  5,157
  5,800
  6,479
  7,195
  7,946
  8,731
  9,552
  10,408
  11,300
  12,227
  13,191
Earnings before tax, $m
  -519
  -811
  -1,223
  -1,784
  -2,529
  -3,489
  -4,697
  -6,183
  -7,974
  -10,092
  -12,555
  -15,375
  -18,559
  -22,112
  -26,032
  -30,315
  -34,956
  -39,947
  -45,281
  -50,948
  -56,942
  -63,257
  -69,886
  -76,827
  -84,079
  -91,643
  -99,520
  -107,717
  -116,241
  -125,100
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
Net income, $m
  -519
  -811
  -1,223
  -1,784
  -2,529
  -3,489
  -4,697
  -6,183
  -7,974
  -10,092
  -12,555
  -15,375
  -18,559
  -22,112
  -26,032
  -30,315
  -34,956
  -39,947
  -45,281
  -50,948
  -56,942
  -63,257
  -69,886
  -76,827
  -84,079
  -91,643
  -99,520
  -107,717
  -116,241
  -125,100

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  1,465
  2,263
  3,385
  4,911
  6,929
  9,526
  12,787
  16,790
  21,604
  27,288
  33,885
  41,428
  49,934
  59,412
  69,858
  81,262
  93,607
  106,873
  121,039
  136,084
  151,988
  168,734
  186,309
  204,707
  223,923
  243,961
  264,828
  286,539
  309,114
  332,577
Adjusted assets (=assets-cash), $m
  1,465
  2,263
  3,385
  4,911
  6,929
  9,526
  12,787
  16,790
  21,604
  27,288
  33,885
  41,428
  49,934
  59,412
  69,858
  81,262
  93,607
  106,873
  121,039
  136,084
  151,988
  168,734
  186,309
  204,707
  223,923
  243,961
  264,828
  286,539
  309,114
  332,577
Revenue / Adjusted assets
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
  0.110
Average production assets, $m
  699
  1,080
  1,616
  2,344
  3,307
  4,547
  6,103
  8,013
  10,311
  13,024
  16,173
  19,773
  23,833
  28,357
  33,343
  38,785
  44,677
  51,009
  57,771
  64,951
  72,542
  80,535
  88,924
  97,704
  106,876
  116,440
  126,400
  136,762
  147,537
  158,736
Working capital, $m
  30
  47
  70
  101
  143
  196
  263
  345
  444
  561
  697
  852
  1,027
  1,222
  1,437
  1,672
  1,925
  2,198
  2,490
  2,799
  3,126
  3,471
  3,832
  4,211
  4,606
  5,018
  5,448
  5,894
  6,358
  6,841
Total debt, $m
  275
  463
  728
  1,088
  1,564
  2,177
  2,947
  3,891
  5,028
  6,369
  7,926
  9,706
  11,714
  13,950
  16,416
  19,107
  22,020
  25,151
  28,494
  32,045
  35,798
  39,750
  43,898
  48,240
  52,775
  57,504
  62,428
  67,552
  72,880
  78,417
Total liabilities, $m
  346
  534
  799
  1,159
  1,635
  2,248
  3,018
  3,962
  5,099
  6,440
  7,997
  9,777
  11,785
  14,021
  16,486
  19,178
  22,091
  25,222
  28,565
  32,116
  35,869
  39,821
  43,969
  48,311
  52,846
  57,575
  62,499
  67,623
  72,951
  78,488
Total equity, $m
  1,119
  1,729
  2,586
  3,752
  5,294
  7,278
  9,769
  12,827
  16,505
  20,848
  25,888
  31,651
  38,150
  45,391
  53,372
  62,084
  71,515
  81,651
  92,474
  103,968
  116,119
  128,913
  142,340
  156,396
  171,077
  186,386
  202,329
  218,916
  236,163
  254,089
Total liabilities and equity, $m
  1,465
  2,263
  3,385
  4,911
  6,929
  9,526
  12,787
  16,789
  21,604
  27,288
  33,885
  41,428
  49,935
  59,412
  69,858
  81,262
  93,606
  106,873
  121,039
  136,084
  151,988
  168,734
  186,309
  204,707
  223,923
  243,961
  264,828
  286,539
  309,114
  332,577
Debt-to-equity ratio
  0.250
  0.270
  0.280
  0.290
  0.300
  0.300
  0.300
  0.300
  0.300
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
  0.310
Adjusted equity ratio
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764
  0.764

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -519
  -811
  -1,223
  -1,784
  -2,529
  -3,489
  -4,697
  -6,183
  -7,974
  -10,092
  -12,555
  -15,375
  -18,559
  -22,112
  -26,032
  -30,315
  -34,956
  -39,947
  -45,281
  -50,948
  -56,942
  -63,257
  -69,886
  -76,827
  -84,079
  -91,643
  -99,520
  -107,717
  -116,241
  -125,100
Depreciation, amort., depletion, $m
  24
  37
  55
  80
  113
  155
  208
  273
  352
  445
  552
  675
  813
  968
  1,138
  1,324
  1,525
  1,741
  1,972
  2,217
  2,476
  2,749
  3,035
  3,335
  3,648
  3,974
  4,314
  4,668
  5,035
  5,418
Funds from operations, $m
  -495
  -774
  -1,168
  -1,704
  -2,416
  -3,333
  -4,488
  -5,909
  -7,622
  -9,648
  -12,003
  -14,700
  -17,746
  -21,144
  -24,894
  -28,991
  -33,431
  -38,206
  -43,309
  -48,732
  -54,467
  -60,508
  -66,851
  -73,493
  -80,432
  -87,668
  -95,206
  -103,049
  -111,205
  -119,683
Change in working capital, $m
  11
  16
  23
  31
  42
  53
  67
  82
  99
  117
  136
  155
  175
  195
  215
  235
  254
  273
  291
  309
  327
  344
  362
  378
  395
  412
  429
  447
  464
  483
Cash from operations, $m
  -507
  -791
  -1,191
  -1,736
  -2,457
  -3,387
  -4,555
  -5,992
  -7,721
  -9,764
  -12,138
  -14,855
  -17,921
  -21,339
  -25,108
  -29,226
  -33,685
  -38,479
  -43,601
  -49,041
  -54,794
  -60,853
  -67,213
  -73,871
  -80,827
  -88,081
  -95,635
  -103,496
  -111,670
  -120,165
Maintenance CAPEX, $m
  -15
  -24
  -37
  -55
  -80
  -113
  -155
  -208
  -273
  -352
  -445
  -552
  -675
  -813
  -968
  -1,138
  -1,324
  -1,525
  -1,741
  -1,972
  -2,217
  -2,476
  -2,749
  -3,035
  -3,335
  -3,648
  -3,974
  -4,314
  -4,668
  -5,035
New CAPEX, $m
  -261
  -381
  -535
  -729
  -963
  -1,239
  -1,556
  -1,911
  -2,298
  -2,713
  -3,149
  -3,600
  -4,060
  -4,524
  -4,986
  -5,443
  -5,892
  -6,332
  -6,761
  -7,181
  -7,591
  -7,993
  -8,389
  -8,781
  -9,172
  -9,564
  -9,960
  -10,363
  -10,775
  -11,199
Cash from investing activities, $m
  -276
  -405
  -572
  -784
  -1,043
  -1,352
  -1,711
  -2,119
  -2,571
  -3,065
  -3,594
  -4,152
  -4,735
  -5,337
  -5,954
  -6,581
  -7,216
  -7,857
  -8,502
  -9,153
  -9,808
  -10,469
  -11,138
  -11,816
  -12,507
  -13,212
  -13,934
  -14,677
  -15,443
  -16,234
Free cash flow, $m
  -783
  -1,196
  -1,763
  -2,519
  -3,500
  -4,739
  -6,267
  -8,111
  -10,292
  -12,829
  -15,732
  -19,007
  -22,656
  -26,676
  -31,062
  -35,807
  -40,901
  -46,336
  -52,103
  -58,193
  -64,601
  -71,321
  -78,350
  -85,687
  -93,333
  -101,292
  -109,569
  -118,173
  -127,112
  -136,400
Issuance/(repayment) of debt, $m
  129
  188
  265
  360
  476
  613
  770
  945
  1,136
  1,341
  1,557
  1,780
  2,008
  2,237
  2,465
  2,691
  2,913
  3,131
  3,343
  3,551
  3,753
  3,952
  4,148
  4,342
  4,535
  4,729
  4,925
  5,124
  5,328
  5,537
Issuance/(repurchase) of shares, $m
  939
  1,421
  2,080
  2,951
  4,070
  5,472
  7,188
  9,241
  11,652
  14,434
  17,595
  21,137
  25,058
  29,353
  34,012
  39,027
  44,388
  50,083
  56,104
  62,443
  69,093
  76,051
  83,314
  90,883
  98,760
  106,951
  115,463
  124,304
  133,488
  143,026
Cash from financing (excl. dividends), $m  
  1,068
  1,609
  2,345
  3,311
  4,546
  6,085
  7,958
  10,186
  12,788
  15,775
  19,152
  22,917
  27,066
  31,590
  36,477
  41,718
  47,301
  53,214
  59,447
  65,994
  72,846
  80,003
  87,462
  95,225
  103,295
  111,680
  120,388
  129,428
  138,816
  148,563
Total cash flow (excl. dividends), $m
  286
  414
  581
  791
  1,046
  1,346
  1,690
  2,075
  2,496
  2,947
  3,420
  3,910
  4,410
  4,914
  5,415
  5,912
  6,400
  6,878
  7,344
  7,800
  8,245
  8,682
  9,112
  9,538
  9,962
  10,388
  10,818
  11,256
  11,703
  12,164
Retained Cash Flow (-), $m
  -939
  -1,421
  -2,080
  -2,951
  -4,070
  -5,472
  -7,188
  -9,241
  -11,652
  -14,434
  -17,595
  -21,137
  -25,058
  -29,353
  -34,012
  -39,027
  -44,388
  -50,083
  -56,104
  -62,443
  -69,093
  -76,051
  -83,314
  -90,883
  -98,760
  -106,951
  -115,463
  -124,304
  -133,488
  -143,026
Prev. year cash balance distribution, $m
  8
  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
  -645
  -1,007
  -1,498
  -2,159
  -3,024
  -4,126
  -5,497
  -7,166
  -9,156
  -11,488
  -14,175
  -17,227
  -20,648
  -24,439
  -28,597
  -33,115
  -37,988
  -43,205
  -48,760
  -54,643
  -60,848
  -67,369
  -74,202
  -81,345
  -88,798
  -96,563
  -104,645
  -113,049
  -121,784
  -130,862
Discount rate, %
  6.40
  6.72
  7.06
  7.41
  7.78
  8.17
  8.58
  9.01
  9.46
  9.93
  10.42
  10.95
  11.49
  12.07
  12.67
  13.31
  13.97
  14.67
  15.40
  16.17
  16.98
  17.83
  18.72
  19.66
  20.64
  21.67
  22.76
  23.89
  25.09
  26.34
PV of cash for distribution, $m
  -607
  -885
  -1,221
  -1,622
  -2,079
  -2,576
  -3,090
  -3,595
  -4,060
  -4,458
  -4,762
  -4,953
  -5,019
  -4,958
  -4,776
  -4,488
  -4,113
  -3,677
  -3,206
  -2,726
  -2,258
  -1,823
  -1,433
  -1,096
  -815
  -589
  -413
  -280
  -185
  -118
Current shareholders' claim on cash, %
  37.3
  14.4
  5.8
  2.4
  1.0
  0.4
  0.2
  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
  0.0
  0.0
  0.0
  0.0

DryShips, Inc. is a holding company. The Company owns drybulk carriers and offshore support vessels. The Company operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the Company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the Company operates as a provider of offshore support services to the global offshore energy industry. The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage (dwt) of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.

FINANCIAL RATIOS  of  DryShips (DRYS)

Valuation Ratios
P/E Ratio 0
Price to Sales 0
Price to Book 0
Price to Tangible Book
Price to Cash Flow 0
Price to Free Cash Flow 0
Growth Rates
Sales Growth Rate -94.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -100%
Cap. Spend. - 3 Yr. Gr. Rate -100%
Financial Strength
Quick Ratio 4
Current Ratio 0.1
LT Debt to Equity 0%
Total Debt to Equity 34%
Interest Coverage -25
Management Effectiveness
Return On Assets -57.6%
Ret/ On Assets - 3 Yr. Avg. -35.6%
Return On Total Capital -98%
Ret/ On T. Cap. - 3 Yr. Avg. -54.3%
Return On Equity -232.7%
Return On Equity - 3 Yr. Avg. -139.1%
Asset Turnover 0.2
Profitability Ratios
Gross Margin -5.8%
Gross Margin - 3 Yr. Avg. 35.1%
EBITDA Margin -284.6%
EBITDA Margin - 3 Yr. Avg. -106.2%
Operating Margin -286.5%
Oper. Margin - 3 Yr. Avg. -117.5%
Pre-Tax Margin -301.9%
Pre-Tax Margin - 3 Yr. Avg. -135.5%
Net Profit Margin -382.7%
Net Profit Margin - 3 Yr. Avg. -226.1%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 18%
Payout Ratio 0%

DRYS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DRYS stock intrinsic value calculation we used $100.716 million for the last fiscal year's total revenue generated by DryShips. The default revenue input number comes from 0001 income statement of DryShips. 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 DRYS stock valuation model: a) initial revenue growth rate of 60% 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 6.4%, whose default value for DRYS is calculated based on our internal credit rating of DryShips, 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 DryShips.
    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 DRYS stock the variable cost ratio is equal to 405.9%.

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 DRYS 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 18.1% for DryShips.

Corporate tax rate of 27% is the nominal tax rate for DryShips. 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 DRYS 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 DRYS are equal to 433.9%.

Life of production assets of 29.3 years is the average useful life of capital assets used in DryShips 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 DRYS is equal to 18.7%. 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 - $707.036 million for DryShips - 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 98.972 million for DryShips 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 DryShips at the current share price and the inputted number of shares is $0.6 billion.

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GASS StealthGas 3.47 3.60  hold

COMPANY NEWS

▶ Why DryShips Inc.'s Shares Popped 19.9% Today   [Oct-30-18 04:09PM  Motley Fool]
▶ Why DryShips Inc.'s Stock Is Soaring Today   [Oct-22-18 04:00PM  Motley Fool]
▶ Why Top Ships Stock Is Skyrocketing Today   [11:41AM  InvestorPlace]
▶ Before You Buy DryShips Incs (NASDAQ:DRYS), Consider This   [Oct-09-18 01:59PM  Simply Wall St.]
▶ Better Buy: DryShips Inc. vs. Diana Shipping Inc.   [Sep-28-18 10:16AM  Motley Fool]
▶ DryShips Inc. Announces Vessel Sale   [Aug-15-18 08:45AM  GlobeNewswire]
▶ Blink Stock Wont Be Able To Hold Its Charge   [Aug-08-18 11:04PM  InvestorPlace]
▶ DryShips Inc. Announces Fleet Update   [Jul-10-18 08:45AM  GlobeNewswire]
▶ 2 Stocks I'd Never Buy, and 1 I'll Consider   [Jul-08-18 05:04PM  Motley Fool]
▶ 6 Cheap Stocks to Buy Under $6   [09:32AM  InvestorPlace]
▶ DryShips Inc. Announces Agreement to Acquire Two Vessels   [May-29-18 08:45AM  GlobeNewswire]
▶ How Financially Strong Is DryShips Inc (NASDAQ:DRYS)?   [May-24-18 07:07PM  Simply Wall St.]
▶ DryShips Inc. Announces Certain Updates   [Mar-15-18 09:00AM  GlobeNewswire]
▶ Benzinga Pro's 6 Stocks To Watch Today   [Feb-09-18 10:19AM  Benzinga]
▶ Why Shares of DryShips Inc. Plunged 17% in December   [Jan-10-18 11:46AM  Motley Fool]
▶ Our Most-Read Stories Of The Year   [Dec-30-17 10:12AM  Benzinga]
▶ DryShips Inc. Announces the Launch of Its New Website   [Nov-27-17 08:45AM  Marketwired]
▶ DryShips Inc. (DRYS) Shares Tumble on Back of 3Q:17 Results   [Nov-21-17 05:24PM  SmarterAnalyst]
▶ DryShips reports 3Q loss   [04:17PM  Associated Press]
▶ 2 Best Performing Stocks in October   [Nov-03-17 03:34PM  Motley Fool]
▶ [$$] Martin Shkrelis Legacy Upends a Creative Financier   [12:09AM  The Wall Street Journal]
▶ [$$] Martin Shkreli's Legacy Upends a Creative Financier   [Oct-24-17 06:02AM  The Wall Street Journal]
▶ Why DryShips, PetMed Express, and VF Corp. Jumped Today   [Oct-23-17 04:30PM  Motley Fool]
▶ Trade of the Week: DryShips   [09:00AM  TheStreet.com]
▶ Here's Why DryShips Inc.'s Stock Is Soaring Today   [Oct-06-17 03:42PM  Motley Fool]
▶ DryShips Inc. Announces Results Of Rights Offering   [Oct-04-17 08:45AM  Marketwired]

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