Danaos Corporation (DAC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Danaos Corporation stock $199, price $148, upside +34.6%, quality 67 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $43.10 – $168.39 · fair‑value band $125.28 – $264.51 · the $148.11 price screens below the $199.40 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 6, 2026.
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Danaos Corporation, through its subsidiaries, owns and operates containerships and drybulk vessels in Australia, Europe, and the United States. It operates in two segments, Container Vessels and Drybulk Vessels.
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The company provides seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry.
As of December 31, 2025, it had a fleet of 75 containerships aggregating 477,230 TEUs; 27 container vessels under construction containerships aggregating 173,314 TEUs; 10 Capesize bulk carriers aggregating 1,755,000 DWT; and 2 dry bulk vessels under construction aggregating 422,000 DWT. The company was formerly known as Danaos Holdings Limited and changed its name to Danaos Corporation in October 2005.
Danaos Corporation was founded in 1963 and is based in Piraeus, Greece.
Stock analysis
Danaos Corporation (DAC) currently trades at $148.11, while our model-based Fair Value estimate is $199.40, implying the stock looks roughly 26% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $506.75 per share, and 20 of the 26 models we run sit above the $148.11 price.
Bear case: the Dividend Discount group reads lowest at $56.35, and 6 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $125.28 (bear) to $264.51 (bull), the price of $148.11 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Danaos Corporation reported revenue of $1.0B in FY2025 versus $690M in FY2021, a compound +10.9%/yr. Reported net income was $495M in FY2025, compounding −17.2%/yr from FY2021.
Key figures
Market cap $2.7B Mid · P/E ratio 5.0 · P/S ratio 2.56 · EPS (TTM) $29.55 · Dividend yield 2.4% · Net margin 51.3% · Return on equity 14.1% · Return on assets (EBIT) 13.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 75 out of 100 (low confidence).
What moves the price
The share trades about 12% below its 52-week high and 71% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 13% fair-value upside, at 35%, DAC screens cheaper than that median.
Fair Value models
Bear$125.28Fair Value $199.40Bull$264.51
Price $148.11 · Upside +34.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($22.18 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF$227.52$344.05$516.3580
Growth DCF$230.61$333.09$475.2178
Owner Earnings$265.63$402.50$604.8776
All 26 models by family
DCF Models
FCF DCF$227.52$344.05$516.3580
Owner Earnings$265.63$402.50$604.8776
5Y Revenue Exit$131.52$179.40$237.3973
5Y EBITDA Exit$303.13$500.84$731.9674
5Y P/E Exit$331.47$553.92$788.1270
10Y Revenue Exit$163.08$214.76$279.2868
10Y EBITDA Exit$272.70$434.05$650.3868
10Y P/E Exit$290.46$470.27$692.5263
Earnings-Based
Graham-Dodd$184.76$579.17$770.8264
Lynch FV$126.48$180.69$234.9061
PEG = 1.0$126.48$180.69$234.9057
EPV$235.28$271.37$302.5874
Dividend Discount
Gordon GGM$30.93$62.11$94.8566
DDM Multi-Stage$30.93$50.58$65.5066
Multiples
P/E Multiple$427.95$570.60$713.2563
P/S Multiple$85.90$114.53$143.1758
P/B Multiple$71.78$95.70$119.6355
EV/EBIT$342.87$459.32$575.7766
EV/EBITDA$371.78$497.86$623.9567
EV/Revenue$65.68$96.61$127.5353
Asset-Based
NCAV (Graham)$0.0400$0.0600$0.070055
Growth DCF
Growth DCF$230.61$333.09$475.2178
Rev-Margin DCF$131.52$182.34$242.0273
Economic Profit
Residual Income$196.62$234.56$326.7376
ROIC Compounder$241.81$301.30$374.6172
Growth Earnings
Growth-Adj P/E$354.72$506.75$658.7767
The fair value above starts from this blend and is adjusted for a cyclical peak year.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+2.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.7%
Start year 2020 (pandemic). Over 10 years: +6.3% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.3%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+19.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.2%
Dividend (yield on the price)2.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.32.9% vs 6.0%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.43% → 48%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 3.2%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−6.1%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −8.3% a year for the price.
News mood ⓘNews mood, the average tone of recent news (92 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: The business shows strength in expanding its secured charter backlog through new vessel orders yet remains limited by thin competitive advantages in a cyclical shipping sector with elevated debt.
Main risk: Cyclical marine shipping rates could reduce charter revenues and pressure margins across the expanding fleet.
Danaos keeps ordering new containerships and locking in five-year charters for them alongside fixtures on existing ships. This builds a larger revenue backlog in its core business of chartering vessels to major liners. Does the growth in secured future income outweigh the cash distributed via the recent special dividend?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Marine Shipping · 220 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score67 · Top 25%
Fair Value upside+34.6% · Above median
Profitability
Return on equity (12 months)14.1% · Above median
Return on assets9.7% · Top 25%
Net margin (12 months)51.3% · Top 25%
Operating margin (12 months)48.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)4.7% · Below median
Dividend yield (12 months)2.4% · Below median
Balance sheet
Debt / equity0.23× · Above median
Valuation Multiplesvs Marine Shipping median · lower = cheaper
P/E (12 months)5.0× · Cheapest 25%
P/B0.71× · Cheapest 25%
P/S (12 months)2.56× · Pricier than median
Price / free cash flow (fiscal year)8.4× · Cheaper than median
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Cite: Fair Value Calculator (2026). "Danaos Corporation Fair Value". https://www.fairvalue-calculator.com/stock/DAC
Frequently asked questions
Is Danaos Corporation (DAC) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $199.40 versus a price of $148.11, about +35% upside (undervalued).
What is the fair value of DAC?
Our model-based fair value for Danaos Corporation is $199.40 (as of Nov 6, 2026), built from audited fundamentals. The current price: $148.11.
What is the quality score of DAC?
Danaos Corporation has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Danaos Corporation (DAC)?
Our model-based price target is the fair value of $199.40 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $125.28, optimistic scenario $264.51. It is a calculation from audited fundamentals, not an analyst target.
What is the Danaos Corporation stock forecast for 2026?
Our models put fair value at $199.40, about +35% upside versus a price of $148.11 (undervalued). Cautious scenario $125.28, optimistic scenario $264.51. The calculation is refreshed regularly with new filings.
What is the revenue of Danaos Corporation (DAC)?
Danaos Corporation reported trailing-twelve-month revenue of about $1.1B (latest available figure, as of Nov 6, 2026).
Does Danaos Corporation pay a dividend?
Danaos Corporation currently shows a dividend yield of 2.43% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Danaos Corporation (DAC) and when is the ex-dividend date?
Danaos Corporation pays a dividend of $3.60 per share a year, a dividend yield of 2.4%. The last ex-dividend date was Oct 13, 2026. A dividend has been paid every year since 2021. The payout ratio is 13.0% of earnings (on adjusted earnings, reported 12.2%). Free cash flow covers the dividend 4.92 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Danaos Corporation (DAC)?
For today's price to be fair in a discounted-cash-flow model, Danaos Corporation would have to grow free cash flow by -6.1 % per year for five years (discount rate 9.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +17.7 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of DAC use?
Our models discount Danaos Corporation at 9.4 %: a base by market capitalisation (mid), damped by beta 0.87, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Danaos Corporation that is -6.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.4 %) and the same formula as our fair value.
How much growth has Danaos Corporation (DAC) delivered so far?
Over the past 5 years revenue at Danaos Corporation grew +17.7 % a year. The price currently implies free-cash-flow growth of -6.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Danaos Corporation (DAC) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Danaos Corporation (-6.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Danaos Corporation (DAC)?
The free-cash-flow yield on the price is 11.92 %: that much free cash flow Danaos Corporation produces per unit of market value. When it exceeds the discount rate of our models (9.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Danaos Corporation (DAC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Danaos Corporation it is $199.40 per share (as of Nov 6, 2026), against a price of $148.11. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Danaos Corporation stock overvalued or undervalued in 2026?
As of Nov 6, 2026, DAC trades below its calculated fair value: price $148.11, fair value $199.40, a gap of about +35% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DAC?
No. The price is what the market pays today ($148.11); the fair value is what the company's own numbers justify ($199.40). For Danaos Corporation the two are $51.29 per share apart. That gap is exactly why we show both numbers side by side.
How much is Danaos Corporation worth?
The market values Danaos Corporation at about $2.7B (market capitalisation, as of Nov 6, 2026). Per share that is $148.11; our models calculate a fair value of $199.40 per share.
What do the bullish and bearish scenarios say about DAC?
Our models span a range for Danaos Corporation: cautious scenario $125.28, base $199.40, optimistic $264.51 per share (as of Nov 6, 2026, price $148.11). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DAC?
Danaos Corporation trades at a price-to-earnings ratio of 5.0 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $199.40 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 5.9 (reported for FY2025: 5.5). Median P/E at fiscal year-end, 7 fiscal years (2019 to 2025), reported earnings, 6 of the years ex one-offs: 2.6. Other multiples: PEG 0.1, P/B 0.7, P/S 2.6, EV/EBITDA 3.8.
What is the PEG ratio of DAC?
The PEG ratio of Danaos Corporation is 0.12 (P/E divided by earnings growth, as of Nov 6, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Danaos Corporation (DAC)?
Balance-sheet figures for Danaos Corporation (as of Nov 6, 2026): return on equity 14.1%, debt of 0.23 per unit of equity. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is DAC from its 52-week high?
Danaos Corporation trades at $148.11, about 12% below its 52-week high of $168.39 and 71% above the low of $86.49 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $199.40 is for.
Which stocks are comparable to Danaos Corporation?
From the same area (Industrials) we also value Adani Ports and Special Economic Zone Limited, COSCO SHIPPING Holdings, Hapag-Lloyd Aktiengesellschaft,, Shanghai International Port (Group) Co, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Danaos Corporation stock attractive at the current price?
The data as of Nov 6, 2026: price $148.11, calculated fair value $199.40 (+35%), Quality Score 67/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DAC calculated?
We run Danaos Corporation through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $199.40 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Danaos Corporation currently trades 26% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Danaos Corporation (DAC)?
The closing price on Nov 6, 2026 was $148.11. Our model-based fair value is $199.40, about +35% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Danaos Corporation right now?
Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($125.28 to $264.51) leaves room in how you read the outcome.
Key figures of Danaos Corporation
How large is the market capitalisation of Danaos Corporation (DAC)?
The market capitalisation of Danaos Corporation is $2.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Danaos Corporation (DAC)?
The price-to-sales ratio of Danaos Corporation is 2.56 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Danaos Corporation (DAC)?
Earnings per share at Danaos Corporation are $29.55 (price ÷ EPS = P/E 5.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Danaos Corporation (DAC)?
The dividend yield of Danaos Corporation is 2.4% (payout 13.0%, on adjusted earnings, reported 12.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Danaos Corporation (DAC)?
The net margin of Danaos Corporation is 51.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Danaos Corporation (DAC)?
The return on equity (ROE) of Danaos Corporation is 14.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Danaos Corporation (DAC)?
On an EBIT basis the return on assets of Danaos Corporation is 13.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Danaos Corporation (DAC)?
The operating margin of Danaos Corporation is 48.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Danaos Corporation (DAC)?
Revenue at Danaos Corporation is growing +4.7% versus a year earlier (3y avg +1.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Danaos Corporation (DAC)?
Earnings per share at Danaos Corporation are growing +16.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Danaos Corporation (DAC) carry?
The net debt of Danaos Corporation is $118M (fiscal year 2025, ≈ 0.4 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026