As of June 22, 2025, American Shipping Company ASA's estimated intrinsic value ranges from $38.46 to $969.10 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $42.75 | +2800.3% |
| Discounted Cash Flow (5Y) | $38.46 | +2509.2% |
| Dividend Discount Model (Multi-Stage) | $777.90 | +52674.7% |
| Dividend Discount Model (Stable) | $969.10 | +65646.3% |
| Earnings Power Value | $171.19 | +11513.8% |
Is American Shipping Company ASA (AMSC.OL) undervalued or overvalued?
With the current market price at $1.47, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate American Shipping Company ASA's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.12 | 1.37 |
| Cost of equity | 9.1% | 12.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 22.0% | 22.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.5% | 8.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $4 | $360M | 71.7% |
| 10-Year Growth | $4 | $389M | 51.4% |
| 5-Year EBITDA | $3 | $284M | 64.2% |
| 10-Year EBITDA | $3 | $332M | 43.2% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $90M |
| Discount Rate (WACC) | 10.5% - 5.4% |
| Enterprise Value | $864M - $1,665M |
| Net Debt | $97M |
| Equity Value | $767M - $1,568M |
| Outstanding Shares | 72M |
| Fair Value | $11 - $22 |
| Selected Fair Value | $171.19 |
| Metric | Value |
|---|---|
| Market Capitalization | $106M |
| Enterprise Value | $-1640M |
| Trailing P/E | 0.01 |
| Forward P/E | 0.01 |
| Trailing EV/EBITDA | 7.40 |
| Current Dividend Yield | 438.86% |
| Dividend Growth Rate (5Y) | -10.09% |
| Debt-to-Equity Ratio | 0.91 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $12.83 |
| Discounted Cash Flow (5Y) | 25% | $9.61 |
| Dividend Discount Model (Multi-Stage) | 20% | $155.58 |
| Dividend Discount Model (Stable) | 15% | $145.37 |
| Earnings Power Value | 10% | $17.12 |
| Weighted Average | 100% | $340.50 |
Based on our comprehensive valuation analysis, American Shipping Company ASA's weighted average intrinsic value is $340.50, which is approximately 23000.6% above the current market price of $1.47.
Key investment considerations:
Given these factors, we believe American Shipping Company ASA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.