- Since Danaos has already booked its ships for 2H 2021 and almost fully for FY2022, the Street's estimates regarding the company's revenues seem quite reliable.
- I use those estimates in 3 scenarios to build the most conservative DCF model possible to let it soak all the market and idiosyncratic risks.
- Danaos is undervalued even under these assumptions, which is confirmed by the sensitivity analysis. There are 3 reasons to think that the underestimation is much higher.
- Despite the rapid stock growth over the past year, I still recommend buying DAC at its current levels based on its intrinsic undervaluation and prospects.
For further details see:
Danaos: +299% YTD But Still Undervalued