PANL
Pangaea Logistics Solutions, Ltd.
$6.95
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 37.1% below fair value
You pay
$6.95
Bear
$6.97
Fair
$11.04
Bull
$15.10
Bear
$6.97
+0.2%
6% stage 1 growth, 11% discount
Fair
$11.04
+58.9%
11% stage 1 growth, 11% discount
Bull
$15.10
+117.3%
14% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (11% base case)
Terminal Value % of EV
39%
Implied Market Multiple
16.4x
Market is pricing in (growth)
6.3%
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 $11.04 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