Ardmore Shipping Corporation
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$13.30
Market Price
$18.83
Overvalued By
41.6%
Method: 10-year unlevered FCF DCF: $45M normalized FCF base (operating cash flow less normalized maintenance/drydock capex, excluding elevated newbuild fleet-renewal capex); 3% growth yrs1-5, 2% yrs6-10; 11% discount rate (shipping-cycle risk); 2% terminal growth; plus $13.2M net cash; 40.85M shares outstanding.
Reasoning: Product tanker rates are highly cyclical; using through-cycle normalized FCF rather than a single elevated-capex, depressed-FCF year (or a single peak-rate year) better captures Ardmore's mid-cycle earnings power, aided by its low-leverage balance sheet.