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GSL

Global Ship Lease Inc – Deep Sea Freight Transportation
global ship lease, inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies. as of march 31, 2020, it owned 45 containerships with an aggregate capacity of 248,968 twenty-foot equivalent units. the company is based in london, the united kingdom.
Analysis Results
Intrinsic Value $2,785.35
Latest Price $20.37
Relative Value 99% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 54.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 54.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.656 0.634
2024 1.02 0.948
2025 1.57 1.42
2026 2.44 2.12
2027 3.77 3.17
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 113 billion. This corresponds to a present value of 92.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.3 billion. Adding in the terminal value gives a total present value of 100 billion.

There are presently 36.0 million outstanding shares, so the intrinsic value per share is 2785.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 237,047,000
Current Cash 128,680,000
Current Liabilities 261,766,000
Current Debt 189,832,000
Non-Cash Working Capital (NCWC) 36,433,000
Change in NCWC 22,702,000
EBIT 357,218,000
Tax Provision -50,000
Depreciation and Amortization 81,303,000
Capital Expenditure -33,689,000
Unlevered Free Cash Flow 427,534,000
Current Assets 143,358,000
Current Cash 75,180,000
Current Liabilities 244,763,000
Current Debt 190,316,000
Non-Cash Working Capital (NCWC) 13,731,000
Change in NCWC 31,407,000
EBIT 229,747,000
Tax Provision 56,000
Depreciation and Amortization 61,563,000
Capital Expenditure -27,113,000
Unlevered Free Cash Flow 295,529,002
Current Assets 98,613,000
Current Cash 80,757,000
Current Liabilities 112,213,000
Current Debt 76,681,000
Non-Cash Working Capital (NCWC) -17,676,000
Change in NCWC 542,000
EBIT 113,499,000
Tax Provision 49,000
Depreciation and Amortization 46,978,000
Capital Expenditure -41,905,000
Unlevered Free Cash Flow 118,980,349
Current Assets 161,870,000
Current Cash 138,024,000
Current Liabilities 129,596,000
Current Debt 87,532,000
Non-Cash Working Capital (NCWC) -18,218,000
Change in NCWC -3,703,000
EBIT 111,567,000
Tax Provision 3,000
Depreciation and Amortization 43,912,000
Capital Expenditure -89,915,000
Unlevered Free Cash Flow 61,852,599
Current Assets 98,972,000
Current Cash 82,059,000
Current Liabilities 95,516,000
Current Debt 64,088,000
Non-Cash Working Capital (NCWC) -14,515,000
Change in NCWC -1,601,000
EBIT 61,574,000
Tax Provision 55,000
Depreciation and Amortization 35,455,000
Capital Expenditure -14,311,000
Unlevered Free Cash Flow 81,117,000
Current Assets 77,388,000
Current Cash 73,266,000
Current Liabilities 57,036,000
Current Debt 40,000,000
Non-Cash Working Capital (NCWC) -12,914,000
Change in NCWC 2,089,000
EBIT 72,300,000
Tax Provision 40,000
Depreciation and Amortization 37,981,000
Capital Expenditure -4,895,000
Unlevered Free Cash Flow 107,475,000
Current Assets 56,929,000
Current Cash 54,243,000
Current Liabilities 48,715,000
Current Debt 31,026,000
Non-Cash Working Capital (NCWC) -15,003,000
Change in NCWC -571,000
EBIT 71,942,000
Tax Provision 46,000
Depreciation and Amortization 42,805,000
Capital Expenditure -6,687,000
Unlevered Free Cash Flow 107,489,000
Current Assets 57,631,000
Current Cash 53,591,000
Current Liabilities 53,632,000
Current Debt 35,160,000
Non-Cash Working Capital (NCWC) -14,432,000
Change in NCWC -1,000,000
EBIT 63,860,000
Tax Provision 38,000
Depreciation and Amortization 44,859,000
Capital Expenditure -110,738,000
Unlevered Free Cash Flow -3,019,000
Current Assets 39,845,000
Current Cash 33,295,000
Current Liabilities 19,982,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,432,000
Change in NCWC -8,213,000
EBIT 42,274,000
Tax Provision 75,000
Depreciation and Amortization 41,059,000
Capital Expenditure -57,934,000
Unlevered Free Cash Flow 16,673,380
Current Assets 38,388,000
Current Cash 24,536,000
Current Liabilities 69,181,000
Current Debt 50,110,000
Non-Cash Working Capital (NCWC) -5,219,000
Change in NCWC 2,024,000
EBIT 51,160,000
Tax Provision 97,000
Depreciation and Amortization 40,385,000
Capital Expenditure -2,598,000
Unlevered Free Cash Flow 90,818,845
Current Assets 44,018,000
Current Cash 26,145,000
Current Liabilities 75,688,000
Current Debt 50,572,000
Non-Cash Working Capital (NCWC) -7,243,000
Change in NCWC -2,655,000
EBIT 61,832,000
Tax Provision 128,000
Depreciation and Amortization 40,343,000
Capital Expenditure -5,914,000
Unlevered Free Cash Flow 93,359,104

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