Intrinsic value of Golden Ocean Group - GOGL

Previous Close

$6.79

  Intrinsic Value

$2.67

stock screener

  Rating & Target

str. sell

-61%

Previous close

$6.79

 
Intrinsic value

$2.67

 
Up/down potential

-61%

 
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 1.0

 

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
  2,468
  3,481
  4,786
  6,424
  8,436
  10,854
  13,710
  17,025
  20,814
  25,088
  29,850
  35,099
  40,828
  47,031
  53,696
  60,813
  68,372
  76,363
  84,777
  93,607
  102,850
  112,505
  122,573
  133,057
  143,965
  155,307
  167,096
Variable operating expenses, $m
  297
  459
  687
  997
  1,406
  1,934
  2,595
  3,408
  4,385
  5,539
  6,878
  8,409
  10,136
  12,060
  14,180
  16,495
  19,000
  21,693
  24,569
  27,622
  30,851
  34,250
  37,817
  41,552
  45,452
  49,519
  53,755
  58,162
  62,744
  67,507
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
  530
  697
  930
  1,246
  1,660
  2,194
  2,861
  3,679
  4,662
  5,822
  7,168
  8,705
  10,439
  12,369
  14,496
  16,818
  19,330
  22,030
  24,914
  27,974
  31,211
  34,618
  38,193
  41,936
  45,845
  49,920
  54,165
  58,581
  63,173
  67,945
Operating income, $m
  206
  440
  770
  1,222
  1,821
  2,593
  3,563
  4,756
  6,192
  7,888
  9,857
  12,109
  14,650
  17,482
  20,603
  24,011
  27,700
  31,665
  35,900
  40,398
  45,152
  50,159
  55,414
  60,914
  66,660
  72,652
  78,892
  85,384
  92,135
  99,151
EBITDA, $m
  333
  636
  1,064
  1,649
  2,423
  3,421
  4,675
  6,215
  8,070
  10,259
  12,802
  15,710
  18,990
  22,645
  26,674
  31,073
  35,836
  40,954
  46,420
  52,225
  58,362
  64,824
  71,606
  78,706
  86,122
  93,855
  101,908
  110,288
  119,001
  128,056
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
  11,342
  12,591
  13,903
  15,275
  16,709
  18,204
  19,761
  21,381
  23,065
Earnings before tax, $m
  135
  328
  599
  967
  1,452
  2,074
  2,850
  3,800
  4,937
  6,274
  7,819
  9,579
  11,557
  13,754
  16,168
  18,796
  21,635
  24,679
  27,924
  31,365
  34,997
  38,817
  42,822
  47,012
  51,385
  55,943
  60,687
  65,623
  70,754
  76,086
Tax expense, $m
  37
  89
  162
  261
  392
  560
  770
  1,026
  1,333
  1,694
  2,111
  2,586
  3,120
  3,714
  4,365
  5,075
  5,841
  6,663
  7,539
  8,468
  9,449
  10,481
  11,562
  12,693
  13,874
  15,105
  16,386
  17,718
  19,103
  20,543
Net income, $m
  99
  240
  437
  706
  1,060
  1,514
  2,081
  2,774
  3,604
  4,580
  5,708
  6,993
  8,437
  10,040
  11,803
  13,721
  15,794
  18,016
  20,385
  22,896
  25,548
  28,336
  31,260
  34,319
  37,511
  40,838
  44,302
  47,905
  51,650
  55,543

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
  6,318
  9,448
  13,709
  19,341
  26,589
  35,691
  46,864
  60,303
  76,167
  94,582
  115,636
  139,380
  165,835
  194,992
  226,823
  261,281
  298,311
  337,852
  379,846
  424,238
  470,981
  520,039
  571,391
  625,028
  680,959
  739,205
  799,807
  862,819
  928,312
Adjusted assets (=assets-cash), $m
  4,089
  6,318
  9,448
  13,709
  19,341
  26,589
  35,691
  46,864
  60,303
  76,167
  94,582
  115,636
  139,380
  165,835
  194,992
  226,823
  261,281
  298,311
  337,852
  379,846
  424,238
  470,981
  520,039
  571,391
  625,028
  680,959
  739,205
  799,807
  862,819
  928,312
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
  11,440
  16,140
  22,188
  29,783
  39,107
  50,321
  63,560
  78,927
  96,496
  116,310
  138,386
  162,717
  189,279
  218,034
  248,934
  281,931
  316,974
  354,018
  393,024
  433,962
  476,814
  521,574
  568,246
  616,852
  667,423
  720,005
  774,658
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
  -1,573
  -1,756
  -1,950
  -2,153
  -2,366
  -2,588
  -2,819
  -3,060
  -3,311
  -3,572
  -3,843
Total debt, $m
  2,064
  3,167
  4,717
  6,826
  9,614
  13,202
  17,707
  23,238
  29,890
  37,743
  46,858
  57,280
  69,033
  82,128
  96,561
  112,317
  129,374
  147,704
  167,277
  188,064
  210,038
  233,175
  257,459
  282,879
  309,429
  337,115
  365,947
  395,944
  427,135
  459,554
Total liabilities, $m
  2,024
  3,127
  4,677
  6,786
  9,574
  13,162
  17,667
  23,198
  29,850
  37,703
  46,818
  57,240
  68,993
  82,088
  96,521
  112,277
  129,334
  147,664
  167,237
  188,024
  209,998
  233,135
  257,419
  282,839
  309,389
  337,075
  365,907
  395,904
  427,095
  459,514
Total equity, $m
  2,065
  3,190
  4,771
  6,923
  9,767
  13,428
  18,024
  23,666
  30,453
  38,464
  47,764
  58,396
  70,387
  83,747
  98,471
  114,546
  131,947
  150,647
  170,615
  191,822
  214,240
  237,845
  262,620
  288,552
  315,639
  343,884
  373,299
  403,903
  435,724
  468,798
Total liabilities and equity, $m
  4,089
  6,317
  9,448
  13,709
  19,341
  26,590
  35,691
  46,864
  60,303
  76,167
  94,582
  115,636
  139,380
  165,835
  194,992
  226,823
  261,281
  298,311
  337,852
  379,846
  424,238
  470,980
  520,039
  571,391
  625,028
  680,959
  739,206
  799,807
  862,819
  928,312
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
  99
  240
  437
  706
  1,060
  1,514
  2,081
  2,774
  3,604
  4,580
  5,708
  6,993
  8,437
  10,040
  11,803
  13,721
  15,794
  18,016
  20,385
  22,896
  25,548
  28,336
  31,260
  34,319
  37,511
  40,838
  44,302
  47,905
  51,650
  55,543
Depreciation, amort., depletion, $m
  127
  197
  294
  427
  602
  828
  1,111
  1,459
  1,878
  2,372
  2,945
  3,601
  4,340
  5,164
  6,072
  7,063
  8,136
  9,289
  10,520
  11,827
  13,210
  14,665
  16,193
  17,792
  19,462
  21,203
  23,017
  24,904
  26,866
  28,905
Funds from operations, $m
  226
  436
  732
  1,133
  1,662
  2,342
  3,192
  4,233
  5,482
  6,951
  8,653
  10,593
  12,777
  15,204
  17,874
  20,784
  23,929
  27,304
  30,904
  34,724
  38,757
  43,001
  47,453
  52,110
  56,973
  62,041
  67,319
  72,809
  78,516
  84,448
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
  233
  445
  745
  1,151
  1,686
  2,372
  3,230
  4,280
  5,537
  7,017
  8,729
  10,680
  12,875
  15,313
  17,995
  20,916
  24,072
  27,458
  31,068
  34,897
  38,941
  43,195
  47,656
  52,323
  57,195
  62,273
  67,560
  73,059
  78,777
  84,719
Maintenance CAPEX, $m
  -80
  -127
  -197
  -294
  -427
  -602
  -828
  -1,111
  -1,459
  -1,878
  -2,372
  -2,945
  -3,601
  -4,340
  -5,164
  -6,072
  -7,063
  -8,136
  -9,289
  -10,520
  -11,827
  -13,210
  -14,665
  -16,193
  -17,792
  -19,462
  -21,203
  -23,017
  -24,904
  -26,866
New CAPEX, $m
  -1,280
  -1,860
  -2,612
  -3,555
  -4,700
  -6,049
  -7,595
  -9,324
  -11,214
  -13,239
  -15,367
  -17,569
  -19,814
  -22,076
  -24,331
  -26,562
  -28,755
  -30,901
  -32,997
  -35,043
  -37,044
  -39,006
  -40,938
  -42,852
  -44,759
  -46,673
  -48,605
  -50,571
  -52,582
  -54,653
Cash from investing activities, $m
  -1,360
  -1,987
  -2,809
  -3,849
  -5,127
  -6,651
  -8,423
  -10,435
  -12,673
  -15,117
  -17,739
  -20,514
  -23,415
  -26,416
  -29,495
  -32,634
  -35,818
  -39,037
  -42,286
  -45,563
  -48,871
  -52,216
  -55,603
  -59,045
  -62,551
  -66,135
  -69,808
  -73,588
  -77,486
  -81,519
Free cash flow, $m
  -1,127
  -1,542
  -2,064
  -2,699
  -3,441
  -4,279
  -5,193
  -6,156
  -7,136
  -8,099
  -9,010
  -9,833
  -10,540
  -11,102
  -11,500
  -11,718
  -11,745
  -11,579
  -11,217
  -10,666
  -9,930
  -9,021
  -7,947
  -6,722
  -5,356
  -3,862
  -2,249
  -528
  1,291
  3,201
Issuance/(repayment) of debt, $m
  763
  1,103
  1,550
  2,109
  2,788
  3,588
  4,505
  5,531
  6,652
  7,853
  9,116
  10,422
  11,753
  13,095
  14,433
  15,756
  17,057
  18,330
  19,573
  20,787
  21,974
  23,138
  24,284
  25,419
  26,550
  27,685
  28,832
  29,998
  31,191
  32,419
Issuance/(repurchase) of shares, $m
  679
  886
  1,143
  1,446
  1,784
  2,147
  2,515
  2,869
  3,182
  3,432
  3,592
  3,639
  3,554
  3,319
  2,922
  2,353
  1,608
  684
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,442
  1,989
  2,693
  3,555
  4,572
  5,735
  7,020
  8,400
  9,834
  11,285
  12,708
  14,061
  15,307
  16,414
  17,355
  18,109
  18,665
  19,014
  19,573
  20,787
  21,974
  23,138
  24,284
  25,419
  26,550
  27,685
  28,832
  29,998
  31,191
  32,419
Total cash flow (excl. dividends), $m
  315
  447
  629
  856
  1,131
  1,455
  1,828
  2,244
  2,698
  3,186
  3,698
  4,228
  4,768
  5,312
  5,855
  6,391
  6,919
  7,436
  8,356
  10,121
  12,044
  14,117
  16,337
  18,697
  21,194
  23,824
  26,583
  29,469
  32,482
  35,620
Retained Cash Flow (-), $m
  -778
  -1,125
  -1,581
  -2,152
  -2,844
  -3,660
  -4,596
  -5,643
  -6,786
  -8,012
  -9,300
  -10,632
  -11,991
  -13,360
  -14,725
  -16,074
  -17,401
  -18,700
  -19,969
  -21,207
  -22,418
  -23,605
  -24,775
  -25,933
  -27,087
  -28,245
  -29,414
  -30,604
  -31,821
  -33,074
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
  -256
  -678
  -952
  -1,296
  -1,713
  -2,205
  -2,769
  -3,399
  -4,088
  -4,826
  -5,602
  -6,405
  -7,223
  -8,048
  -8,870
  -9,683
  -10,482
  -11,265
  -11,613
  -11,085
  -10,374
  -9,488
  -8,438
  -7,236
  -5,893
  -4,421
  -2,831
  -1,134
  661
  2,546
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
  -239
  -587
  -760
  -945
  -1,133
  -1,310
  -1,465
  -1,587
  -1,666
  -1,697
  -1,681
  -1,619
  -1,518
  -1,386
  -1,233
  -1,070
  -905
  -747
  -580
  -409
  -277
  -179
  -110
  -64
  -34
  -16
  -6
  -2
  1
  1
Current shareholders' claim on cash, %
  57.0
  35.4
  23.4
  16.3
  11.9
  9.1
  7.2
  5.8
  4.9
  4.2
  3.7
  3.4
  3.1
  2.9
  2.8
  2.7
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6
  2.6

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 (GOGL)

Valuation Ratios
P/E Ratio -5.6
Price to Sales 2.8
Price to Book 0.6
Price to Tangible Book
Price to Cash Flow -31.3
Price to Free Cash Flow -2.5
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 $460.023 million for the last fiscal year's total revenue generated by Golden Ocean Group. The default revenue input number comes from 0001 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 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, 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 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.

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 463.6%.

Life of production assets of 26.8 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 -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 - 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 140.138 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 $1.0 billion.

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COMPANY NEWS

▶ GOGL - Invitation to presentation of Q3 2018 Results   [Nov-13-18 10:11AM  GlobeNewswire]
▶ GOGL - Changes to the Board composition   [Sep-21-18 11:46AM  GlobeNewswire]
▶ GOGL - 2018 Annual General Meeting   [10:46AM  GlobeNewswire]
▶ GOGL - Q2 2018 Presentation   [05:43AM  GlobeNewswire]
▶ GOGL - Second Quarter 2018 Results   [02:11AM  GlobeNewswire]
▶ GOGL - Invitation to presentation of Q2 2018 Results   [Aug-13-18 06:33AM  GlobeNewswire]
▶ GOGL - Notice of Annual General Meeting 2018   [Aug-10-18 04:23AM  GlobeNewswire]
▶ GOGL - 2018 Annual General Meeting   [Jul-03-18 09:36AM  GlobeNewswire]
▶ GOGL - Q1 2018 Presentation   [May-30-18 05:16AM  GlobeNewswire]
▶ GOGL - First Quarter 2018 Results   [02:01AM  GlobeNewswire]
▶ GOGL - Invitation to presentation of Q1 2018 Results   [May-23-18 07:17AM  GlobeNewswire]
▶ GOGL - Filing of 2017 Annual Report on Form 20-F   [Mar-20-18 07:47PM  GlobeNewswire]
▶ GOGL - Declaration of options and capital adjustment   [Mar-01-18 03:13PM  GlobeNewswire]
▶ GOGL - Q4 2017 Presentation   [07:42AM  GlobeNewswire]
▶ GOGL - Q4 2017 Presentation   [07:41AM  GlobeNewswire]
▶ GOGL - Fourth Quarter 2017 Results   [02:16AM  GlobeNewswire]
▶ GOGL - Fourth Quarter 2017 Results   [02:15AM  GlobeNewswire]
▶ GOGL - Invitation to presentation of Q4 2017 Results   [Feb-14-18 11:41AM  GlobeNewswire]
▶ Baltic index gains nearly 2 pct on capesize rally   [Feb-09-18 09:46AM  Reuters]
▶ Baltic index posts first gain in seven sessions   [Feb-06-18 09:35AM  Reuters]
▶ Google to relaunch map service in China: Nikkei   [Jan-15-18 01:46PM  Reuters]
▶ GOGL - Capital adjustment   [Dec-05-17 11:35AM  GlobeNewswire]
▶ GOGL - Capital adjustment   [11:35AM  GlobeNewswire]
▶ GOGL - Q3 2017 Presentation   [Nov-21-17 07:17AM  GlobeNewswire]
▶ GOGL - Third Quarter 2017 Results   [02:17AM  GlobeNewswire]
▶ GOGL - Third Quarter 2017 Results   [02:16AM  GlobeNewswire]
▶ GOGL - Invitation to presentation of Q3 2017 Results   [Nov-13-17 10:11AM  GlobeNewswire]
▶ GOGL - Equity offering: Issue of New Shares   [Oct-19-17 10:13AM  GlobeNewswire]
▶ GOGL - Equity offering successfully placed   [Oct-17-17 02:31AM  GlobeNewswire]
▶ GOGL - Announcement of commencement of equity offering   [Oct-16-17 04:04PM  GlobeNewswire]
▶ 4 Reasons These Giant Tech Stocks May Be Unstoppable   [Oct-11-17 06:00AM  Investopedia]
▶ GOGL - 2017 Annual General Meeting   [Sep-25-17 03:00AM  GlobeNewswire]

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