DHT
DHT Holdings, Inc.
$17.38
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 9.7% below fair value
You pay
$17.38
Bear
$15.39
Fair
$19.24
Bull
$23.08
Bear
$15.39
-11.4%
$1.31 × 12x P/E
Fair
$19.24
+10.7%
$1.31 × 15x P/E
Bull
$23.08
+32.8%
$1.31 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
13.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $18.00 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $19.24 per share.
Warnings
The company pays out 112% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples