INSW International Seaways, Inc.
$83.52
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Mild · Conviction

Fair Value

Trading 9.3% below fair value

You pay $83.52
Bear $73.68
Fair $92.09
Bull $110.51
Bear $73.68 -11.8% $6.23 × 12x P/E
Fair $92.09 +10.3% $6.23 × 15x P/E
Bull $110.51 +32.3% $6.23 × 18x P/E

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 13.4x

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 $86.67 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $92.09 per share.

Warnings

The company pays out 172% 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