Not exact matches
To be
conservative, I cut off
valuation estimates at 20 % when using this method.
Typical choices for N are 10 years, a
conservative estimate of how long it takes to reach reasonable
valuations, 15 years, a
conservative extreme to reach bargain
valuations, and 20 years, a pessimistic extreme.
However, if market conditions continue to improve such that DHT does earn additional hire or fleet values rise, we believe the preceding
valuation estimates will prove to be far too
conservative.
In any case, today's price of $ 6.95 / share is still a substantial discount to the company's
estimated «
conservative value»; about a 45 % discount to the
conservative valuation.
I prefer a
conservative reserves - based approach to
valuation, so this will actually reduce my intrinsic value
estimate for the moment — but in return the company receives a $ 20 million completion payment, and obviously there's substantial future value to be realized from 140 M of carry payments (plus another 20 M of contingent payments).
That's with a very
conservative estimate of the value of worldwide airport lounge access and no
valuation given to the fourth - night - free - on - paid - hotel - stay benefits, the six free rounds of gold in the first 12 months, and the category bonuses.