PANL
Pangaea Logistics Solutions, Ltd.
$7.66
Platform & Compounding FCF
50%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 60.2% below fair value
You pay
$7.66
Bear
$12.98
Fair
$19.27
Bull
$25.53
Bear
$12.98
+69.5%
6% stage 1 growth, 11% discount
Fair
$19.27
+151.6%
11% stage 1 growth, 11% discount
Bull
$25.53
+233.3%
14% stage 1 growth, 11% discount
Adjust Assumptions
10.5%
11.0%
3.0%
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
39%
Implied Market Multiple
11.3x
Market is pricing in (growth)
1.2%
vs 10.5% base
Summary
Using a two-stage FCF DCF with 11% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $19.27 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions