Intrinsic value of Golden Ocean Group Limited - GOGL

Previous Close

$5.41

  Intrinsic Value

$0.00

stock screener

  Rating & Target

str. sell

-100%

Previous close

$5.41

 
Intrinsic value

$0.00

 
Up/down potential

-100%

 
Rating

str. sell

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 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 0.8

 

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
  736
  1,137
  1,701
  2,467
  3,481
  4,786
  6,424
  8,435
  10,854
  13,709
  17,024
  20,813
  25,087
  29,849
  35,097
  40,826
  47,028
  53,693
  60,810
  68,369
  76,359
  84,772
  93,602
  102,845
  112,499
  122,566
  133,050
  143,958
  155,300
  167,088
Variable operating expenses, $m
  158
  117
  61
  -17
  -119
  -251
  -417
  -620
  -864
  -1,152
  -1,719
  -2,102
  -2,534
  -3,015
  -3,545
  -4,123
  -4,750
  -5,423
  -6,142
  -6,905
  -7,712
  -8,562
  -9,454
  -10,387
  -11,362
  -12,379
  -13,438
  -14,540
  -15,685
  -16,876
Fixed operating expenses, $m
  233
  238
  243
  249
  254
  260
  266
  271
  277
  283
  290
  296
  303
  309
  316
  323
  330
  337
  345
  352
  360
  368
  376
  384
  393
  401
  410
  419
  429
  438
Total operating expenses, $m
  391
  355
  304
  232
  135
  9
  -151
  -349
  -587
  -869
  -1,429
  -1,806
  -2,231
  -2,706
  -3,229
  -3,800
  -4,420
  -5,086
  -5,797
  -6,553
  -7,352
  -8,194
  -9,078
  -10,003
  -10,969
  -11,978
  -13,028
  -14,121
  -15,256
  -16,438
Operating income, $m
  345
  782
  1,397
  2,236
  3,346
  4,777
  6,575
  8,783
  11,441
  14,578
  18,454
  22,620
  27,318
  32,554
  38,326
  44,627
  51,448
  58,779
  66,607
  74,922
  83,711
  92,966
  102,680
  112,848
  123,469
  134,544
  146,078
  158,078
  170,556
  183,526
EBITDA, $m
  705
  1,211
  1,923
  2,895
  4,181
  5,837
  7,919
  10,475
  13,550
  17,182
  21,399
  26,220
  31,658
  37,718
  44,397
  51,689
  59,583
  68,067
  77,127
  86,749
  96,920
  107,631
  118,872
  130,639
  142,930
  155,746
  169,094
  182,981
  197,421
  212,429
Interest expense (income), $m
  38
  70
  111
  171
  255
  369
  519
  713
  956
  1,255
  1,614
  2,038
  2,530
  3,093
  3,728
  4,435
  5,214
  6,065
  6,986
  7,976
  9,033
  10,155
  11,341
  12,591
  13,902
  15,275
  16,708
  18,203
  19,760
  21,380
  23,064
Earnings before tax, $m
  275
  670
  1,226
  1,981
  2,978
  4,258
  5,862
  7,827
  10,186
  12,964
  16,416
  20,089
  24,225
  28,827
  33,891
  39,412
  45,383
  51,793
  58,632
  65,889
  73,556
  81,625
  90,089
  98,946
  108,194
  117,836
  127,875
  138,318
  149,176
  160,462
Tax expense, $m
  74
  181
  331
  535
  804
  1,150
  1,583
  2,113
  2,750
  3,500
  4,432
  5,424
  6,541
  7,783
  9,151
  10,641
  12,253
  13,984
  15,831
  17,790
  19,860
  22,039
  24,324
  26,715
  29,212
  31,816
  34,526
  37,346
  40,278
  43,325
Net income, $m
  201
  489
  895
  1,446
  2,174
  3,108
  4,279
  5,714
  7,436
  9,464
  11,983
  14,665
  17,685
  21,043
  24,740
  28,771
  33,130
  37,809
  42,801
  48,099
  53,696
  59,586
  65,765
  72,231
  78,982
  86,020
  93,349
  100,972
  108,899
  117,137

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
  4,089
  6,317
  9,448
  13,708
  19,340
  26,588
  35,689
  46,862
  60,300
  76,163
  94,578
  115,630
  139,373
  165,826
  194,982
  226,811
  261,268
  298,296
  337,836
  379,827
  424,217
  470,957
  520,013
  571,363
  624,997
  680,925
  739,168
  799,767
  862,776
  928,266
Adjusted assets (=assets-cash), $m
  4,089
  6,317
  9,448
  13,708
  19,340
  26,588
  35,689
  46,862
  60,300
  76,163
  94,578
  115,630
  139,373
  165,826
  194,982
  226,811
  261,268
  298,296
  337,836
  379,827
  424,217
  470,957
  520,013
  571,363
  624,997
  680,925
  739,168
  799,767
  862,776
  928,266
Revenue / Adjusted assets
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
  0.180
Average production assets, $m
  3,412
  5,272
  7,884
  11,439
  16,139
  22,187
  29,782
  39,105
  50,319
  63,557
  78,923
  96,491
  116,304
  138,379
  162,709
  189,270
  218,023
  248,922
  281,917
  316,958
  354,000
  393,004
  433,941
  476,791
  521,548
  568,218
  616,821
  667,390
  719,969
  774,619
Working capital, $m
  -17
  -26
  -39
  -57
  -80
  -110
  -148
  -194
  -250
  -315
  -392
  -479
  -577
  -687
  -807
  -939
  -1,082
  -1,235
  -1,399
  -1,572
  -1,756
  -1,950
  -2,153
  -2,365
  -2,587
  -2,819
  -3,060
  -3,311
  -3,572
  -3,843
Total debt, $m
  2,064
  3,167
  4,717
  6,825
  9,613
  13,201
  17,706
  23,237
  29,888
  37,741
  46,856
  57,277
  69,030
  82,124
  96,556
  112,312
  129,368
  147,696
  167,269
  188,055
  210,027
  233,164
  257,447
  282,864
  309,414
  337,098
  365,928
  395,925
  427,114
  459,531
Total liabilities, $m
  2,024
  3,127
  4,677
  6,785
  9,573
  13,161
  17,666
  23,197
  29,848
  37,701
  46,816
  57,237
  68,990
  82,084
  96,516
  112,272
  129,328
  147,656
  167,229
  188,015
  209,987
  233,124
  257,407
  282,824
  309,374
  337,058
  365,888
  395,885
  427,074
  459,491
Total equity, $m
  2,065
  3,190
  4,771
  6,923
  9,767
  13,427
  18,023
  23,665
  30,451
  38,462
  47,762
  58,393
  70,383
  83,742
  98,466
  114,540
  131,940
  150,639
  170,607
  191,813
  214,229
  237,833
  262,607
  288,538
  315,624
  343,867
  373,280
  403,882
  435,702
  468,774
Total liabilities and equity, $m
  4,089
  6,317
  9,448
  13,708
  19,340
  26,588
  35,689
  46,862
  60,299
  76,163
  94,578
  115,630
  139,373
  165,826
  194,982
  226,812
  261,268
  298,295
  337,836
  379,828
  424,216
  470,957
  520,014
  571,362
  624,998
  680,925
  739,168
  799,767
  862,776
  928,265
Debt-to-equity ratio
  1.000
  0.990
  0.990
  0.990
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
  0.980
Adjusted equity ratio
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505
  0.505

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  201
  489
  895
  1,446
  2,174
  3,108
  4,279
  5,714
  7,436
  9,464
  11,983
  14,665
  17,685
  21,043
  24,740
  28,771
  33,130
  37,809
  42,801
  48,099
  53,696
  59,586
  65,765
  72,231
  78,982
  86,020
  93,349
  100,972
  108,899
  117,137
Depreciation, amort., depletion, $m
  360
  429
  526
  659
  834
  1,060
  1,344
  1,691
  2,110
  2,604
  2,945
  3,600
  4,340
  5,163
  6,071
  7,062
  8,135
  9,288
  10,519
  11,827
  13,209
  14,664
  16,192
  17,791
  19,461
  21,202
  23,016
  24,903
  26,865
  28,904
Funds from operations, $m
  560
  918
  1,421
  2,105
  3,008
  4,169
  5,623
  7,405
  9,545
  12,068
  14,928
  18,266
  22,024
  26,207
  30,812
  35,833
  41,265
  47,097
  53,321
  59,926
  66,905
  74,250
  81,957
  90,021
  98,443
  107,222
  116,364
  125,875
  135,763
  146,041
Change in working capital, $m
  -6
  -9
  -13
  -18
  -23
  -30
  -38
  -46
  -56
  -66
  -76
  -87
  -98
  -110
  -121
  -132
  -143
  -153
  -164
  -174
  -184
  -194
  -203
  -213
  -222
  -232
  -241
  -251
  -261
  -271
Cash from operations, $m
  567
  927
  1,434
  2,123
  3,032
  4,199
  5,661
  7,452
  9,601
  12,133
  15,005
  18,353
  22,123
  26,316
  30,932
  35,965
  41,408
  47,250
  53,484
  60,100
  67,089
  74,444
  82,160
  90,234
  98,665
  107,454
  116,605
  126,126
  136,024
  146,312
Maintenance CAPEX, $m
  -80
  -127
  -197
  -294
  -427
  -602
  -828
  -1,111
  -1,459
  -1,878
  -2,372
  -2,945
  -3,600
  -4,340
  -5,163
  -6,071
  -7,062
  -8,135
  -9,288
  -10,519
  -11,827
  -13,209
  -14,664
  -16,192
  -17,791
  -19,461
  -21,202
  -23,016
  -24,903
  -26,865
New CAPEX, $m
  -1,279
  -1,860
  -2,612
  -3,555
  -4,700
  -6,048
  -7,594
  -9,324
  -11,214
  -13,238
  -15,366
  -17,568
  -19,813
  -22,075
  -24,330
  -26,561
  -28,753
  -30,899
  -32,995
  -35,041
  -37,042
  -39,004
  -40,936
  -42,850
  -44,757
  -46,670
  -48,603
  -50,568
  -52,580
  -54,650
Cash from investing activities, $m
  -1,359
  -1,987
  -2,809
  -3,849
  -5,127
  -6,650
  -8,422
  -10,435
  -12,673
  -15,116
  -17,738
  -20,513
  -23,413
  -26,415
  -29,493
  -32,632
  -35,815
  -39,034
  -42,283
  -45,560
  -48,869
  -52,213
  -55,600
  -59,042
  -62,548
  -66,131
  -69,805
  -73,584
  -77,483
  -81,515
Free cash flow, $m
  -793
  -1,060
  -1,375
  -1,727
  -2,095
  -2,452
  -2,762
  -2,983
  -3,072
  -2,982
  -2,733
  -2,160
  -1,291
  -98
  1,439
  3,333
  5,592
  8,216
  11,201
  14,539
  18,220
  22,231
  26,559
  31,192
  36,117
  41,323
  46,800
  52,542
  58,542
  64,797
Issuance/(repayment) of debt, $m
  763
  1,103
  1,549
  2,109
  2,788
  3,588
  4,505
  5,531
  6,652
  7,853
  9,115
  10,421
  11,753
  13,094
  14,432
  15,755
  17,056
  18,329
  19,572
  20,786
  21,973
  23,136
  24,283
  25,418
  26,549
  27,684
  28,831
  29,996
  31,189
  32,417
Issuance/(repurchase) of shares, $m
  577
  636
  686
  705
  670
  552
  317
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,340
  1,739
  2,235
  2,814
  3,458
  4,140
  4,822
  5,531
  6,652
  7,853
  9,115
  10,421
  11,753
  13,094
  14,432
  15,755
  17,056
  18,329
  19,572
  20,786
  21,973
  23,136
  24,283
  25,418
  26,549
  27,684
  28,831
  29,996
  31,189
  32,417
Total cash flow (excl. dividends), $m
  547
  680
  861
  1,088
  1,363
  1,688
  2,060
  2,547
  3,580
  4,870
  6,382
  8,261
  10,462
  12,996
  15,871
  19,089
  22,648
  26,545
  30,773
  35,325
  40,193
  45,368
  50,842
  56,610
  62,666
  69,007
  75,631
  82,538
  89,731
  97,215
Retained Cash Flow (-), $m
  -777
  -1,125
  -1,581
  -2,151
  -2,844
  -3,660
  -4,596
  -5,642
  -6,786
  -8,011
  -9,299
  -10,632
  -11,990
  -13,359
  -14,724
  -16,074
  -17,400
  -18,699
  -19,968
  -21,206
  -22,417
  -23,604
  -24,773
  -25,931
  -27,086
  -28,243
  -29,413
  -30,602
  -31,820
  -33,072
Prev. year cash balance distribution, $m
  207
  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
  -24
  -446
  -720
  -1,064
  -1,481
  -1,973
  -2,536
  -3,095
  -3,206
  -3,141
  -2,917
  -2,371
  -1,528
  -363
  1,147
  3,015
  5,248
  7,846
  10,806
  14,119
  17,776
  21,764
  26,069
  30,679
  35,581
  40,763
  46,218
  51,936
  57,912
  64,143
Discount rate, %
  7.10
  7.46
  7.83
  8.22
  8.63
  9.06
  9.51
  9.99
  10.49
  11.01
  11.57
  12.14
  12.75
  13.39
  14.06
  14.76
  15.50
  16.27
  17.09
  17.94
  18.84
  19.78
  20.77
  21.81
  22.90
  24.04
  25.25
  26.51
  27.83
  29.22
PV of cash for distribution, $m
  -22
  -386
  -574
  -776
  -979
  -1,172
  -1,342
  -1,445
  -1,306
  -1,105
  -875
  -599
  -321
  -62
  160
  333
  453
  520
  539
  521
  474
  410
  340
  270
  205
  150
  106
  72
  47
  29
Current shareholders' claim on cash, %
  61.0
  42.3
  32.4
  26.7
  23.5
  21.7
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0
  21.0

Golden Ocean Group Limited, formerly Knightsbridge Shipping Limited, is an international dry bulk shipping company. The Company is engaged in the transportation of dry bulk cargoes. It owns and operates a fleet of dry bulk carrier vessels, focusing on the Capesize, Panamax and Supramax markets. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers. Its fleet includes owned vessels, bareboat vessels, chartered vessels, commercial management vessels and newbuildings. It owns over 40 dry bulk carriers and has contracts for over 20 newbuildings. It also has over 10 vessels chartered-in (of which over eight are chartered in from Ship Finance and over five are chartered in from third parties) and over one vessel chartered-in through a joint venture. Approximately six of the vessels are chartered-out on fixed rate time charters and the other operates in the spot market or fixed on index-linked time charter contracts.

FINANCIAL RATIOS  of  Golden Ocean Group Limited (GOGL)

Valuation Ratios
P/E Ratio -4.5
Price to Sales 2.2
Price to Book 0.5
Price to Tangible Book
Price to Cash Flow -24.9
Price to Free Cash Flow -2
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 $460 million for the last fiscal year's total revenue generated by Golden Ocean Group Limited. The default revenue input number comes from 0001 income statement of Golden Ocean Group Limited. 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 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 7.1%, whose default value for GOGL is calculated based on our internal credit rating of Golden Ocean Group Limited, 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 Limited.
    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 40.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $228 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 5.4% for Golden Ocean Group Limited.

Corporate tax rate of 27% is the nominal tax rate for Golden Ocean Group Limited. 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 463.6%.

Life of production assets of 26.8 years is the average useful life of capital assets used in Golden Ocean Group Limited 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 -2.3%. 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 - $1494.049 million for Golden Ocean Group Limited - 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 143.678 million for Golden Ocean Group Limited 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 Limited at the current share price and the inputted number of shares is $0.8 billion.

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