Intrinsic value of International Seaways, Inc. - INSW

Previous Close

$17.28

  Intrinsic Value

$8.65

stock screener

  Rating & Target

sell

-50%

Previous close

$17.28

 
Intrinsic value

$8.65

 
Up/down potential

-50%

 
Rating

sell

We calculate the intrinsic value of INSW 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 0.5

 

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, %
  44.80
  40.82
  37.24
  34.01
  31.11
  28.50
  26.15
  24.04
  22.13
  20.42
  18.88
  17.49
  16.24
  15.12
  14.10
  13.19
  12.38
  11.64
  10.97
  10.38
  9.84
  9.35
  8.92
  8.53
  8.17
  7.86
  7.57
  7.31
  7.08
  6.87
Revenue, $m
  391
  551
  756
  1,013
  1,328
  1,706
  2,152
  2,669
  3,260
  3,926
  4,667
  5,483
  6,374
  7,337
  8,372
  9,477
  10,650
  11,889
  13,194
  14,563
  15,996
  17,492
  19,052
  20,677
  22,367
  24,124
  25,951
  27,849
  29,822
  31,872
Variable operating expenses, $m
  531
  748
  1,027
  1,376
  1,804
  2,318
  2,925
  3,628
  4,431
  5,335
  6,343
  7,452
  8,662
  9,971
  11,378
  12,879
  14,473
  16,157
  17,930
  19,791
  21,738
  23,772
  25,892
  28,100
  30,397
  32,785
  35,268
  37,847
  40,528
  43,314
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
  531
  748
  1,027
  1,376
  1,804
  2,318
  2,925
  3,628
  4,431
  5,335
  6,343
  7,452
  8,662
  9,971
  11,378
  12,879
  14,473
  16,157
  17,930
  19,791
  21,738
  23,772
  25,892
  28,100
  30,397
  32,785
  35,268
  37,847
  40,528
  43,314
Operating income, $m
  -140
  -198
  -271
  -364
  -477
  -612
  -773
  -958
  -1,170
  -1,409
  -1,675
  -1,969
  -2,288
  -2,634
  -3,006
  -3,402
  -3,823
  -4,268
  -4,737
  -5,228
  -5,742
  -6,280
  -6,840
  -7,423
  -8,030
  -8,661
  -9,316
  -9,998
  -10,706
  -11,442
EBITDA, $m
  -36
  -50
  -69
  -92
  -121
  -156
  -196
  -243
  -297
  -358
  -425
  -500
  -581
  -669
  -763
  -864
  -971
  -1,084
  -1,203
  -1,327
  -1,458
  -1,594
  -1,737
  -1,885
  -2,039
  -2,199
  -2,365
  -2,538
  -2,718
  -2,905
Interest expense (income), $m
  33
  71
  102
  143
  196
  262
  343
  440
  554
  687
  839
  1,009
  1,199
  1,409
  1,637
  1,885
  2,150
  2,434
  2,734
  3,052
  3,387
  3,738
  4,106
  4,490
  4,890
  5,307
  5,741
  6,192
  6,660
  7,147
  7,653
Earnings before tax, $m
  -212
  -300
  -415
  -559
  -738
  -955
  -1,212
  -1,513
  -1,857
  -2,248
  -2,685
  -3,168
  -3,697
  -4,272
  -4,890
  -5,552
  -6,257
  -7,003
  -7,789
  -8,615
  -9,481
  -10,386
  -11,330
  -12,313
  -13,337
  -14,402
  -15,508
  -16,658
  -17,853
  -19,096
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
  -212
  -300
  -415
  -559
  -738
  -955
  -1,212
  -1,513
  -1,857
  -2,248
  -2,685
  -3,168
  -3,697
  -4,272
  -4,890
  -5,552
  -6,257
  -7,003
  -7,789
  -8,615
  -9,481
  -10,386
  -11,330
  -12,313
  -13,337
  -14,402
  -15,508
  -16,658
  -17,853
  -19,096

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
  2,539
  3,575
  4,906
  6,575
  8,621
  11,078
  13,975
  17,334
  21,170
  25,493
  30,306
  35,606
  41,389
  47,645
  54,365
  61,539
  69,154
  77,202
  85,674
  94,564
  103,867
  113,584
  123,715
  134,265
  145,241
  156,653
  168,514
  180,839
  193,648
  206,961
Adjusted assets (=assets-cash), $m
  2,539
  3,575
  4,906
  6,575
  8,621
  11,078
  13,975
  17,334
  21,170
  25,493
  30,306
  35,606
  41,389
  47,645
  54,365
  61,539
  69,154
  77,202
  85,674
  94,564
  103,867
  113,584
  123,715
  134,265
  145,241
  156,653
  168,514
  180,839
  193,648
  206,961
Revenue / Adjusted assets
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
  0.154
Average production assets, $m
  1,801
  2,536
  3,481
  4,665
  6,116
  7,859
  9,915
  12,298
  15,020
  18,087
  21,501
  25,262
  29,364
  33,803
  38,571
  43,660
  49,063
  54,773
  60,784
  67,091
  73,692
  80,585
  87,773
  95,258
  103,045
  111,142
  119,557
  128,301
  137,389
  146,834
Working capital, $m
  38
  53
  73
  98
  129
  165
  209
  259
  316
  381
  453
  532
  618
  712
  812
  919
  1,033
  1,153
  1,280
  1,413
  1,552
  1,697
  1,848
  2,006
  2,170
  2,340
  2,517
  2,701
  2,893
  3,092
Total debt, $m
  1,163
  1,629
  2,226
  2,976
  3,894
  4,997
  6,298
  7,806
  9,529
  11,470
  13,631
  16,011
  18,607
  21,416
  24,434
  27,654
  31,074
  34,687
  38,491
  42,483
  46,660
  51,023
  55,572
  60,308
  65,237
  70,360
  75,686
  81,220
  86,971
  92,949
Total liabilities, $m
  1,140
  1,605
  2,203
  2,952
  3,871
  4,974
  6,275
  7,783
  9,505
  11,446
  13,607
  15,987
  18,583
  21,393
  24,410
  27,631
  31,050
  34,664
  38,468
  42,459
  46,636
  50,999
  55,548
  60,285
  65,213
  70,337
  75,663
  81,197
  86,948
  92,925
Total equity, $m
  1,399
  1,970
  2,703
  3,623
  4,750
  6,104
  7,700
  9,551
  11,665
  14,047
  16,698
  19,619
  22,805
  26,252
  29,955
  33,908
  38,104
  42,538
  47,206
  52,105
  57,231
  62,585
  68,167
  73,980
  80,028
  86,316
  92,851
  99,642
  106,700
  114,035
Total liabilities and equity, $m
  2,539
  3,575
  4,906
  6,575
  8,621
  11,078
  13,975
  17,334
  21,170
  25,493
  30,305
  35,606
  41,388
  47,645
  54,365
  61,539
  69,154
  77,202
  85,674
  94,564
  103,867
  113,584
  123,715
  134,265
  145,241
  156,653
  168,514
  180,839
  193,648
  206,960
Debt-to-equity ratio
  0.830
  0.830
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
Adjusted equity ratio
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551
  0.551

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -212
  -300
  -415
  -559
  -738
  -955
  -1,212
  -1,513
  -1,857
  -2,248
  -2,685
  -3,168
  -3,697
  -4,272
  -4,890
  -5,552
  -6,257
  -7,003
  -7,789
  -8,615
  -9,481
  -10,386
  -11,330
  -12,313
  -13,337
  -14,402
  -15,508
  -16,658
  -17,853
  -19,096
Depreciation, amort., depletion, $m
  105
  147
  202
  271
  356
  457
  576
  715
  873
  1,052
  1,250
  1,469
  1,707
  1,965
  2,243
  2,538
  2,853
  3,184
  3,534
  3,901
  4,284
  4,685
  5,103
  5,538
  5,991
  6,462
  6,951
  7,459
  7,988
  8,537
Funds from operations, $m
  -107
  -153
  -212
  -288
  -383
  -498
  -636
  -798
  -984
  -1,196
  -1,435
  -1,699
  -1,990
  -2,306
  -2,648
  -3,014
  -3,404
  -3,818
  -4,255
  -4,715
  -5,196
  -5,700
  -6,227
  -6,775
  -7,346
  -7,940
  -8,557
  -9,199
  -9,866
  -10,559
Change in working capital, $m
  12
  15
  20
  25
  31
  37
  43
  50
  57
  65
  72
  79
  86
  93
  100
  107
  114
  120
  127
  133
  139
  145
  151
  158
  164
  170
  177
  184
  191
  199
Cash from operations, $m
  -119
  -168
  -232
  -313
  -413
  -535
  -679
  -848
  -1,041
  -1,261
  -1,507
  -1,778
  -2,076
  -2,400
  -2,748
  -3,121
  -3,518
  -3,938
  -4,382
  -4,847
  -5,335
  -5,846
  -6,378
  -6,933
  -7,510
  -8,110
  -8,734
  -9,383
  -10,057
  -10,758
Maintenance CAPEX, $m
  -72
  -105
  -147
  -202
  -271
  -356
  -457
  -576
  -715
  -873
  -1,052
  -1,250
  -1,469
  -1,707
  -1,965
  -2,243
  -2,538
  -2,853
  -3,184
  -3,534
  -3,901
  -4,284
  -4,685
  -5,103
  -5,538
  -5,991
  -6,462
  -6,951
  -7,459
  -7,988
New CAPEX, $m
  -557
  -735
  -944
  -1,184
  -1,451
  -1,743
  -2,055
  -2,383
  -2,722
  -3,067
  -3,414
  -3,760
  -4,103
  -4,439
  -4,768
  -5,089
  -5,403
  -5,710
  -6,011
  -6,307
  -6,601
  -6,894
  -7,188
  -7,485
  -7,787
  -8,096
  -8,415
  -8,745
  -9,087
  -9,445
Cash from investing activities, $m
  -629
  -840
  -1,091
  -1,386
  -1,722
  -2,099
  -2,512
  -2,959
  -3,437
  -3,940
  -4,466
  -5,010
  -5,572
  -6,146
  -6,733
  -7,332
  -7,941
  -8,563
  -9,195
  -9,841
  -10,502
  -11,178
  -11,873
  -12,588
  -13,325
  -14,087
  -14,877
  -15,696
  -16,546
  -17,433
Free cash flow, $m
  -748
  -1,008
  -1,324
  -1,700
  -2,136
  -2,634
  -3,192
  -3,807
  -4,478
  -5,201
  -5,973
  -6,789
  -7,648
  -8,546
  -9,481
  -10,453
  -11,459
  -12,501
  -13,577
  -14,689
  -15,837
  -17,024
  -18,251
  -19,521
  -20,835
  -22,198
  -23,611
  -25,079
  -26,604
  -28,190
Issuance/(repayment) of debt, $m
  353
  465
  598
  749
  919
  1,103
  1,301
  1,508
  1,723
  1,941
  2,161
  2,380
  2,596
  2,809
  3,017
  3,221
  3,419
  3,613
  3,804
  3,992
  4,177
  4,363
  4,549
  4,737
  4,928
  5,124
  5,326
  5,534
  5,751
  5,977
Issuance/(repurchase) of shares, $m
  643
  871
  1,148
  1,479
  1,866
  2,309
  2,809
  3,363
  3,971
  4,630
  5,336
  6,088
  6,883
  7,719
  8,593
  9,505
  10,453
  11,437
  12,457
  13,514
  14,607
  15,740
  16,912
  18,126
  19,385
  20,689
  22,044
  23,450
  24,911
  26,431
Cash from financing (excl. dividends), $m  
  996
  1,336
  1,746
  2,228
  2,785
  3,412
  4,110
  4,871
  5,694
  6,571
  7,497
  8,468
  9,479
  10,528
  11,610
  12,726
  13,872
  15,050
  16,261
  17,506
  18,784
  20,103
  21,461
  22,863
  24,313
  25,813
  27,370
  28,984
  30,662
  32,408
Total cash flow (excl. dividends), $m
  248
  328
  422
  529
  648
  778
  918
  1,064
  1,216
  1,370
  1,525
  1,679
  1,832
  1,982
  2,129
  2,273
  2,413
  2,550
  2,684
  2,817
  2,948
  3,079
  3,210
  3,343
  3,477
  3,616
  3,758
  3,905
  4,058
  4,218
Retained Cash Flow (-), $m
  -643
  -871
  -1,148
  -1,479
  -1,866
  -2,309
  -2,809
  -3,363
  -3,971
  -4,630
  -5,336
  -6,088
  -6,883
  -7,719
  -8,593
  -9,505
  -10,453
  -11,437
  -12,457
  -13,514
  -14,607
  -15,740
  -16,912
  -18,126
  -19,385
  -20,689
  -22,044
  -23,450
  -24,911
  -26,431
Prev. year cash balance distribution, $m
  42
  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
  -353
  -543
  -726
  -950
  -1,218
  -1,530
  -1,891
  -2,299
  -2,756
  -3,260
  -3,812
  -4,409
  -5,051
  -5,737
  -6,464
  -7,232
  -8,040
  -8,887
  -9,773
  -10,697
  -11,660
  -12,661
  -13,702
  -14,784
  -15,907
  -17,074
  -18,286
  -19,545
  -20,853
  -22,213
Discount rate, %
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
  34.58
PV of cash for distribution, $m
  -326
  -458
  -557
  -656
  -749
  -831
  -896
  -941
  -962
  -958
  -930
  -881
  -813
  -732
  -643
  -551
  -459
  -374
  -296
  -228
  -170
  -124
  -88
  -60
  -40
  -25
  -16
  -9
  -5
  -3
Current shareholders' claim on cash, %
  51.3
  27.1
  14.8
  8.3
  4.8
  2.8
  1.7
  1.1
  0.7
  0.4
  0.3
  0.2
  0.1
  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

International Seaways, Inc. and its subsidiaries own and operate a fleet of oceangoing vessels. The Company's oceangoing vessels engage in the transportation of crude oil and petroleum products in the International Flag trades. The Company's segments are International Crude Tankers and International Product Carriers. Its 55-vessel fleet consists of Ultra Large Crude Carrier (ULCC), Very Large Crude Carrier (VLCC), Aframax and Panamax crude tankers, as well as long range 1 (LR1), LR2 and medium range (MR) product carriers. Its International Crude Tankers segment is made up of a ULCC and a fleet of VLCCs, Aframaxes, and Panamaxes. Its International Product Carriers segment consists of a fleet of MRs, LR1s and an LR2 engaged in the transportation of crude and refined petroleum products. Through joint venture partnerships (the JVs), it has ownership interests in approximately four liquefied natural gas carriers and approximately two floating storage and offloading service vessels.

FINANCIAL RATIOS  of  International Seaways, Inc. (INSW)

Valuation Ratios
P/E Ratio -28
Price to Sales 1.3
Price to Book 0.4
Price to Tangible Book
Price to Cash Flow 4.3
Price to Free Cash Flow 4.4
Growth Rates
Sales Growth Rate -20.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 200%
Cap. Spend. - 3 Yr. Gr. Rate -38.8%
Financial Strength
Quick Ratio 15
Current Ratio 0
LT Debt to Equity 36.8%
Total Debt to Equity 37.3%
Interest Coverage 0
Management Effectiveness
Return On Assets 0.8%
Ret/ On Assets - 3 Yr. Avg. 0.8%
Return On Total Capital -1%
Ret/ On T. Cap. - 3 Yr. Avg. -1.4%
Return On Equity -1.4%
Return On Equity - 3 Yr. Avg. -2%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 51.8%
Gross Margin - 3 Yr. Avg. 46.8%
EBITDA Margin 23.9%
EBITDA Margin - 3 Yr. Avg. 27.3%
Operating Margin 1.3%
Oper. Margin - 3 Yr. Avg. 5.4%
Pre-Tax Margin -4.5%
Pre-Tax Margin - 3 Yr. Avg. 2.5%
Net Profit Margin -4.5%
Net Profit Margin - 3 Yr. Avg. 2.4%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. -0.3%
Payout Ratio 0%

INSW stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the INSW stock intrinsic value calculation we used $270 million for the last fiscal year's total revenue generated by International Seaways, Inc.. The default revenue input number comes from 0001 income statement of International Seaways, 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 INSW stock valuation model: a) initial revenue growth rate of 44.8% 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 8.4%, whose default value for INSW is calculated based on our internal credit rating of International Seaways, 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 International Seaways, 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 INSW stock the variable cost ratio is equal to 135.9%.

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 INSW 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 8.8% for International Seaways, Inc..

Corporate tax rate of 27% is the nominal tax rate for International Seaways, 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 INSW 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 INSW are equal to 460.7%.

Life of production assets of 17.2 years is the average useful life of capital assets used in International Seaways, 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 INSW is equal to 9.7%. 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 - $1009.855 million for International Seaways, 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 29.199 million for International Seaways, 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 International Seaways, Inc. at the current share price and the inputted number of shares is $0.5 billion.

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