INSW
International Seaways, Inc.
$86.76
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 7.1% below fair value
You pay
$86.76
Bear
$74.74
Fair
$93.43
Bull
$112.11
Bear
$74.74
-13.9%
$6.23 × 12x P/E
Fair
$93.43
+7.7%
$6.23 × 15x P/E
Bull
$112.11
+29.2%
$6.23 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
13.9x
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 $93.33 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $93.43 per share.
Warnings
The company pays out 134% 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