* Note: Prices are in Million (M) USD.
Description:
Himalaya Shipping Ltd. is a leading entity in the dry bulk shipping sector, dedicated to the efficient and sustainable transportation of vital commodities that underpin global trade. Based in Hamilton, Bermuda, the company operates a modern fleet complemented by advanced logistics solutions, ensuring superior operational efficiency. With a strong commitment to customer-centric services, Himalaya Shipping is strategically positioned to meet the increasing demand for reliable bulk transportation, thereby playing a pivotal role in the dynamic maritime industry landscape.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $25 M
Debt : $701 M
EBITDA : $88 M
Net Debt (Debt - Cash): $677 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Marine shipping
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 51.33
Since Forward PE Ratio is greater than 35, 0 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 4 overlapping fiscal years (max 20).Average Free Cash Flow: $-206 M
Average Revenue: $42 M
Revenue Converted To Free Cash Flow (%): -487.8%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $124 M
Revenue 3 Years Ago (2021-12-31): $0 M
Total Growth over 3 Years: 0.0%
3-Year Revenue CAGR (Historical): 0.0%
Forward 5-Year CAGR (Tapered): 0.0%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Error: This stock does not have 5 years of share count data.Using default values for calculation.
Based on default values, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.00
Trailing 12-Month Earnings Per Share (EPS): $0.15
Average Earnings Per Share (EPS): $0.15
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 4 valid ROE years (max 20).Average ROE: 2.8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $7.7
52-Week Low: $4.06
Threshold Price (15% Above 52-Week Low): $4.67
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $378 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on high P/E, we recommend do not exceed 0.20% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 6 points to above Himalaya Shipping Ltd. (HSHP) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Risk-Free Anchored PE (25% MoS)
18.20 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (9.87)
× EPS ($0.15) = $1.48.
Last 1 Years Avg PE
9.87, Fair Value PE
9, Industry Based PE
8, ROE Based PE
2.83, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 5 values, average assigned is
9.58. Value-Trades has assined P/E value
9.60. An average (Current Year EPS + Next Year EPS) earning per share is
$0.15.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $1.44 (PE 9.58 × EPS $0.15)
Fair value using simple average PE × EPS: $1.48 (PE 9.87 × EPS $0.15)
Lesser of these two: $1.44
So the Final Fair Value is: $1.44
Understanding the Value-Trades P/E Blend (click to expand)
▾
What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $0.15
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 9.87 | $1.48 |
| 1 Yrs Avg-PE | 9.87 | $1.48 |
| Value-Trades Assigned | 9.6 | $1.44 |
Note: Only 1 years of reliable P/E data available. Fair value is calculated using blended models to reduce bias.
