Danaos Corporation

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: normalized FCF base $155.25M (average of FY2024 FCF -$37.6M and FY2025 FCF $348.1M, smoothing heavy newbuild-program capex); 6% annual FCF growth years 1-5 (reflecting ~36% fleet-capacity growth from 28 vessels under construction delivering through 2028-2029); 2% years 6-10; 11% discount rate (container-shipping rate cyclicality); 2% terminal growth; net debt $224.5M; 18.20M shares outstanding.

Reasoning: Danaos is a highly cyclical container/drybulk shipping company mid-way through a large fleet-renewal capex program, so free cash flow (rather than net income, which is inflated relative to cash generation due to heavy newbuild spending) better reflects distributable value; averaging the two most recent fiscal years smooths the capex-driven FCF swing, and a higher discount rate reflects charter-rate and asset cyclicality.