Intrinsic value of Diana Shipping inc. - DSX

Previous Close

$3.23

  Intrinsic Value

$1.48

stock screener

  Rating & Target

str. sell

-54%

Previous close

$3.23

 
Intrinsic value

$1.48

 
Up/down potential

-54%

 
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

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 0.3

 

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, %
  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
  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
  408
  563
  759
  1,000
  1,291
  1,635
  2,036
  2,495
  3,014
  3,593
  4,232
  4,931
  5,689
  6,504
  7,376
  8,302
  9,281
  10,314
  11,397
  12,532
  13,718
  14,955
  16,243
  17,584
  18,977
  20,426
  21,932
  23,497
  25,123
  26,813
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
  408
  563
  759
  1,000
  1,291
  1,635
  2,036
  2,495
  3,014
  3,593
  4,232
  4,931
  5,689
  6,504
  7,376
  8,302
  9,281
  10,314
  11,397
  12,532
  13,718
  14,955
  16,243
  17,584
  18,977
  20,426
  21,932
  23,497
  25,123
  26,813
Operating income, $m
  -179
  -247
  -332
  -438
  -565
  -715
  -891
  -1,092
  -1,319
  -1,572
  -1,852
  -2,158
  -2,489
  -2,846
  -3,227
  -3,633
  -4,061
  -4,513
  -4,987
  -5,484
  -6,003
  -6,544
  -7,107
  -7,694
  -8,304
  -8,938
  -9,597
  -10,281
  -10,993
  -11,733
EBITDA, $m
  -56
  -77
  -104
  -136
  -176
  -223
  -278
  -340
  -411
  -490
  -577
  -673
  -776
  -887
  -1,006
  -1,133
  -1,266
  -1,407
  -1,555
  -1,710
  -1,871
  -2,040
  -2,216
  -2,399
  -2,589
  -2,787
  -2,992
  -3,205
  -3,427
  -3,658
Interest expense (income), $m
  19
  32
  45
  62
  83
  109
  141
  178
  221
  271
  327
  389
  458
  534
  616
  704
  798
  898
  1,004
  1,115
  1,232
  1,355
  1,483
  1,616
  1,755
  1,900
  2,051
  2,207
  2,370
  2,539
  2,714
Earnings before tax, $m
  -211
  -292
  -394
  -521
  -674
  -856
  -1,069
  -1,313
  -1,590
  -1,899
  -2,241
  -2,616
  -3,023
  -3,462
  -3,931
  -4,430
  -4,959
  -5,517
  -6,102
  -6,716
  -7,357
  -8,027
  -8,724
  -9,449
  -10,204
  -10,989
  -11,804
  -12,651
  -13,532
  -14,447
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
  -211
  -292
  -394
  -521
  -674
  -856
  -1,069
  -1,313
  -1,590
  -1,899
  -2,241
  -2,616
  -3,023
  -3,462
  -3,931
  -4,430
  -4,959
  -5,517
  -6,102
  -6,716
  -7,357
  -8,027
  -8,724
  -9,449
  -10,204
  -10,989
  -11,804
  -12,651
  -13,532
  -14,447

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
  1,700
  2,347
  3,162
  4,166
  5,378
  6,812
  8,481
  10,394
  12,556
  14,969
  17,633
  20,545
  23,702
  27,098
  30,728
  34,586
  38,668
  42,968
  47,483
  52,211
  57,151
  62,304
  67,671
  73,256
  79,063
  85,099
  91,372
  97,891
  104,665
  111,708
Adjusted assets (=assets-cash), $m
  1,700
  2,347
  3,162
  4,166
  5,378
  6,812
  8,481
  10,394
  12,556
  14,969
  17,633
  20,545
  23,702
  27,098
  30,728
  34,586
  38,668
  42,968
  47,483
  52,211
  57,151
  62,304
  67,671
  73,256
  79,063
  85,099
  91,372
  97,891
  104,665
  111,708
Revenue / Adjusted assets
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
  0.135
Average production assets, $m
  1,807
  2,494
  3,360
  4,427
  5,714
  7,238
  9,012
  11,045
  13,342
  15,906
  18,736
  21,831
  25,185
  28,794
  32,651
  36,751
  41,088
  45,657
  50,455
  55,479
  60,728
  66,203
  71,906
  77,840
  84,011
  90,425
  97,091
  104,017
  111,216
  118,699
Working capital, $m
  76
  104
  140
  185
  239
  303
  377
  462
  558
  665
  783
  913
  1,053
  1,204
  1,365
  1,536
  1,717
  1,908
  2,109
  2,319
  2,538
  2,767
  3,006
  3,254
  3,512
  3,780
  4,058
  4,348
  4,649
  4,962
Total debt, $m
  842
  1,152
  1,543
  2,025
  2,607
  3,295
  4,097
  5,015
  6,052
  7,211
  8,489
  9,887
  11,402
  13,033
  14,775
  16,627
  18,586
  20,650
  22,817
  25,087
  27,458
  29,932
  32,508
  35,188
  37,976
  40,873
  43,884
  47,013
  50,265
  53,645
Total liabilities, $m
  816
  1,127
  1,518
  2,000
  2,581
  3,270
  4,071
  4,989
  6,027
  7,185
  8,464
  9,862
  11,377
  13,007
  14,749
  16,601
  18,561
  20,625
  22,792
  25,061
  27,433
  29,906
  32,482
  35,163
  37,950
  40,848
  43,859
  46,988
  50,239
  53,620
Total equity, $m
  884
  1,220
  1,644
  2,166
  2,796
  3,542
  4,410
  5,405
  6,529
  7,784
  9,169
  10,683
  12,325
  14,091
  15,979
  17,985
  20,107
  22,343
  24,691
  27,150
  29,719
  32,398
  35,189
  38,093
  41,113
  44,252
  47,513
  50,903
  54,426
  58,088
Total liabilities and equity, $m
  1,700
  2,347
  3,162
  4,166
  5,377
  6,812
  8,481
  10,394
  12,556
  14,969
  17,633
  20,545
  23,702
  27,098
  30,728
  34,586
  38,668
  42,968
  47,483
  52,211
  57,152
  62,304
  67,671
  73,256
  79,063
  85,100
  91,372
  97,891
  104,665
  111,708
Debt-to-equity ratio
  0.950
  0.940
  0.940
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.930
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
  0.920
Adjusted equity ratio
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -211
  -292
  -394
  -521
  -674
  -856
  -1,069
  -1,313
  -1,590
  -1,899
  -2,241
  -2,616
  -3,023
  -3,462
  -3,931
  -4,430
  -4,959
  -5,517
  -6,102
  -6,716
  -7,357
  -8,027
  -8,724
  -9,449
  -10,204
  -10,989
  -11,804
  -12,651
  -13,532
  -14,447
Depreciation, amort., depletion, $m
  123
  170
  229
  301
  389
  492
  613
  751
  908
  1,082
  1,275
  1,485
  1,713
  1,959
  2,221
  2,500
  2,795
  3,106
  3,432
  3,774
  4,131
  4,504
  4,892
  5,295
  5,715
  6,151
  6,605
  7,076
  7,566
  8,075
Funds from operations, $m
  -88
  -122
  -166
  -220
  -285
  -364
  -456
  -562
  -682
  -817
  -967
  -1,131
  -1,310
  -1,503
  -1,710
  -1,930
  -2,164
  -2,411
  -2,670
  -2,942
  -3,226
  -3,523
  -3,832
  -4,154
  -4,489
  -4,837
  -5,199
  -5,575
  -5,966
  -6,372
Change in working capital, $m
  22
  29
  36
  45
  54
  64
  74
  85
  96
  107
  118
  129
  140
  151
  161
  171
  181
  191
  201
  210
  219
  229
  238
  248
  258
  268
  279
  290
  301
  313
Cash from operations, $m
  -110
  -151
  -202
  -264
  -339
  -428
  -530
  -647
  -778
  -924
  -1,085
  -1,261
  -1,450
  -1,654
  -1,871
  -2,102
  -2,345
  -2,602
  -2,871
  -3,152
  -3,446
  -3,752
  -4,071
  -4,402
  -4,747
  -5,105
  -5,478
  -5,865
  -6,267
  -6,685
Maintenance CAPEX, $m
  -87
  -123
  -170
  -229
  -301
  -389
  -492
  -613
  -751
  -908
  -1,082
  -1,275
  -1,485
  -1,713
  -1,959
  -2,221
  -2,500
  -2,795
  -3,106
  -3,432
  -3,774
  -4,131
  -4,504
  -4,892
  -5,295
  -5,715
  -6,151
  -6,605
  -7,076
  -7,566
New CAPEX, $m
  -532
  -687
  -866
  -1,067
  -1,287
  -1,524
  -1,774
  -2,033
  -2,297
  -2,564
  -2,831
  -3,095
  -3,354
  -3,609
  -3,857
  -4,100
  -4,337
  -4,569
  -4,798
  -5,024
  -5,249
  -5,475
  -5,703
  -5,934
  -6,171
  -6,414
  -6,665
  -6,927
  -7,199
  -7,483
Cash from investing activities, $m
  -619
  -810
  -1,036
  -1,296
  -1,588
  -1,913
  -2,266
  -2,646
  -3,048
  -3,472
  -3,913
  -4,370
  -4,839
  -5,322
  -5,816
  -6,321
  -6,837
  -7,364
  -7,904
  -8,456
  -9,023
  -9,606
  -10,207
  -10,826
  -11,466
  -12,129
  -12,816
  -13,532
  -14,275
  -15,049
Free cash flow, $m
  -729
  -961
  -1,238
  -1,560
  -1,928
  -2,340
  -2,796
  -3,292
  -3,826
  -4,396
  -4,998
  -5,630
  -6,290
  -6,976
  -7,687
  -8,423
  -9,182
  -9,966
  -10,774
  -11,608
  -12,469
  -13,358
  -14,277
  -15,228
  -16,213
  -17,234
  -18,295
  -19,396
  -20,542
  -21,734
Issuance/(repayment) of debt, $m
  240
  310
  391
  482
  582
  688
  801
  918
  1,038
  1,158
  1,279
  1,398
  1,515
  1,630
  1,742
  1,852
  1,959
  2,064
  2,167
  2,270
  2,371
  2,473
  2,576
  2,681
  2,788
  2,897
  3,011
  3,129
  3,252
  3,380
Issuance/(repurchase) of shares, $m
  471
  628
  818
  1,043
  1,304
  1,602
  1,937
  2,308
  2,714
  3,154
  3,627
  4,131
  4,665
  5,228
  5,819
  6,437
  7,081
  7,753
  8,450
  9,175
  9,926
  10,706
  11,515
  12,353
  13,224
  14,127
  15,066
  16,041
  17,055
  18,109
Cash from financing (excl. dividends), $m  
  711
  938
  1,209
  1,525
  1,886
  2,290
  2,738
  3,226
  3,752
  4,312
  4,906
  5,529
  6,180
  6,858
  7,561
  8,289
  9,040
  9,817
  10,617
  11,445
  12,297
  13,179
  14,091
  15,034
  16,012
  17,024
  18,077
  19,170
  20,307
  21,489
Total cash flow (excl. dividends), $m
  -18
  -22
  -28
  -35
  -42
  -50
  -58
  -66
  -75
  -84
  -92
  -101
  -110
  -118
  -126
  -134
  -142
  -149
  -157
  -164
  -171
  -179
  -186
  -194
  -202
  -210
  -218
  -226
  -235
  -244
Retained Cash Flow (-), $m
  -471
  -628
  -818
  -1,043
  -1,304
  -1,602
  -1,937
  -2,308
  -2,714
  -3,154
  -3,627
  -4,131
  -4,665
  -5,228
  -5,819
  -6,437
  -7,081
  -7,753
  -8,450
  -9,175
  -9,926
  -10,706
  -11,515
  -12,353
  -13,224
  -14,127
  -15,066
  -16,041
  -17,055
  -18,109
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
  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
  -471
  -628
  -818
  -1,043
  -1,304
  -1,602
  -1,937
  -2,308
  -2,714
  -3,154
  -3,627
  -4,131
  -4,665
  -5,228
  -5,819
  -6,437
  -7,081
  -7,753
  -8,450
  -9,175
  -9,926
  -10,706
  -11,515
  -12,353
  -13,224
  -14,127
  -15,066
  -16,041
  -17,055
  -18,109
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
  -434
  -529
  -625
  -717
  -798
  -864
  -910
  -935
  -936
  -914
  -871
  -810
  -736
  -652
  -564
  -476
  -392
  -315
  -246
  -187
  -139
  -100
  -70
  -47
  -31
  -20
  -12
  -7
  -4
  -2
Current shareholders' claim on cash, %
  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 inc. (DSX)

Valuation Ratios
P/E Ratio -1.7
Price to Sales 2.4
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow -13
Price to Free Cash Flow -3.8
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 inc.. The default revenue input number comes from 0001 income statement of Diana Shipping inc.. 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 inc., 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 inc..
    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 177.8%.

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 inc..

Corporate tax rate of 27% is the nominal tax rate for Diana Shipping inc.. 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 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 DSX are equal to 787.1%.

Life of production assets of 14.7 years is the average useful life of capital assets used in Diana Shipping inc. 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 32.9%. 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 - $624.758 million for Diana Shipping inc. - 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 105.766 million for Diana Shipping inc. 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 inc. at the current share price and the inputted number of shares is $0.3 billion.

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