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Danaos Corporation (DAC) Fair Value & Analysis

Industrials · US · Market cap $2.3B

DC Danaos Corporation logo Danaos Corporation DAC · US
Price$140.72
Fair Value$176.95
Upside+25.7%
Quality66/100
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Expensive Growth
Highly profitable · 49.9% net margin
Low debt · generates free cash flow
2.80% dividend yield
Ranks above peers (12/15)
Wide moat 73/100
Evidence: High Range $109.31 – $241.93 Share as image

Fair value as of: Jul 12, 2026

From 26 valuation models · updated 29 days ago

Fair value updated Jul 12, 2026, revised from $421.40 to $176.95 (−58.0%) since Jun 25, 2026. Share price +10.4% over the past month.

A solid business, screening 26% undervalued on our models.

What matters now

  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range ($109.31 to $241.93) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$143.15 $44.72 Fair Value $176.95 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

60‑month range $44.72 – $143.15 · fair‑value band $109.31 – $241.93 · the $140.72 price screens below the $176.95 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Danaos Corporation (DAC) currently trades at $140.72, while our model-based Fair Value estimate is $176.95, implying the stock looks roughly 25.7% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Danaos Corporation generated revenue of $1.0B at a net margin of 49.9%. Revenue grew 0.2% year over year. It earns a return on equity of 14.0%. Net debt stands at $118M. Fundamentals as of Jul 12, 2026

Our scenario range runs from $109.31 (bear case) to $241.93 (bull case); at $140.72, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 73% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 67% fair-value upside, at 26%, DAC screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $203.09 $291.75 $413.74 80
Residual Income $194.91 $238.27 $549.53 76
Rev-Margin DCF $122.14 $171.17 $228.61 74
All 26 models by family
DCF Models
FCF DCF $200.49 $301.42 $449.52 38
Owner Earnings $249.83 $376.78 $563.04 31
5Y Revenue Exit $122.14 $168.73 $225.60 39
5Y EBITDA Exit $292.99 $488.73 $717.93 41
5Y P/E Exit $321.20 $541.57 $773.83 38
10Y Revenue Exit $147.59 $196.48 $258.07 36
10Y EBITDA Exit $256.24 $413.81 $625.82 37
10Y P/E Exit $273.84 $449.70 $667.58 35
Earnings-Based
Graham-Dodd $184.76 $579.17 $770.82 54
Lynch FV $126.48 $180.69 $234.90 50
PEG = 1.0 $126.48 $180.69 $234.90 46
EPV $233.25 $268.65 $299.19 59
Dividend Discount
Gordon GGM $30.66 $61.09 $92.51 70
DDM Multi-Stage $30.66 $49.98 $64.49 61
Multiples
P/E Multiple $427.95 $570.60 $713.25 63
P/S Multiple $85.90 $114.53 $143.17 58
P/B Multiple $346.43 $461.91 $577.39 55
EV/EBIT $358.42 $474.87 $591.31 53
EV/EBITDA $387.33 $513.41 $639.49 54
EV/Revenue $81.23 $112.16 $143.08 43
Asset-Based
NCAV (Graham) $104.25 $139.70 $208.51 50
Growth DCF
Growth DCF $203.09 $291.75 $413.74 80
Rev-Margin DCF $122.14 $171.17 $228.61 74
Economic Profit
Residual Income $194.91 $238.27 $549.53 76
ROIC Compounder $239.28 $297.18 $368.28 72
Growth Earnings
Growth-Adj P/E $354.72 $506.75 $658.77 68

Widest divergence: Growth Earnings ($506.75) versus Dividend Discount ($49.98). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $1.0B
Revenue growth (YoY) +0.2%
Net margin 49.9%
Return on equity 14.0%
Free cash flow $322M FY2025
P/E ratio 4.5
More key figures
Operating margin 49.4%
EPS (TTM) $28.33
Dividend yield 2.8%
EPS growth (YoY) +25.6%
Net debt $118M FY2025

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 66 · Market factors (momentum, volatility) 83

Profitability 50
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 19
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 78
Price trend over the last 3–12 months (market factor)
52W Momentum 99
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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. The company provides seaborne transportation services by operating vessels in the containership and drybulk sectors of the shipping industry.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$1.0B
Latest YoY
+2.8%
Avg. growth/yr (3Y)
+1.6%
Avg. growth/yr (5Y)
+17.7%
Avg. growth/yr (22Y)
+9.3%
Revenue +10.9%/yr
FY21 $690M
FY22 $993M
FY23 $974M
FY24 $1.0B
FY25 $1.0B
Net income −17.2%/yr
FY21 $1.1B
FY22 $559M
FY23 $576M
FY24 $505M
FY25 $495M

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Cite: Fair Value Calculator (2026). "Danaos Corporation Fair Value". https://www.fairvalue-calculator.com/stock/DAC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Marine Shipping · 231 stocks

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.

Quality Score 66 · Top 25%
Fair Value upside +26% · Above median
Return on equity (TTM) 14% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 50% · Top 25%
Operating margin (TTM) 49% · Top 25%
Revenue growth 0% · Below median
Dividend yield (TTM) 2.8% · Above median
Debt / equity 0.23× · Lower than median

Valuation Multiples vs Marine Shipping median · lower = cheaper

P/E (TTM) 4.5× · Cheaper than 75% of peers
P/B 0.62× · Cheaper than median
P/S (TTM) 2.24× · Pricier than median
P/FCF 7.3× · Pricier than median
EV/EBITDA 3.3× · Cheaper than 75% of peers
PEG 0.12× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 68 · sector 29
FUTURE 1 · sector 18
PAST 56 · sector 27
HEALTH 89 · sector 88
DIVIDEND 56 · sector 47

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Marine Shipping stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).

Stock Price Fair Value vs Fair Value
Adani Ports and Special Economic Zone Limited ADANIPORTS ₹1,828 ₹1,041 -43%
A.P. Møller - Mærsk A/S MAERSKA kr 16,520 kr 3,033 -82%
COSCO SHIPPING Holdings 601919 ¥13.98 ¥40.37 +189%
Shanghai International Port (Group) Co 600018 ¥5.17 ¥6.57 +27%
HMM Co 011200 20,050 KRW 33,855 KRW +69%
Ningbo Zhoushan Port Company 601018 ¥3.35 ¥5.58 +67%
Qingdao Port International Co 601298 ¥8.88 ¥15.97 +80%
JSW Infrastructure Limited JSWINFRA ₹330.05 ₹126.31 -62%
Wan Hai Lines Ltd 2615 80.70 TWD 212.79 TWD +164%
Wallenius Wilhelmsen ASA WAWI kr 137.70 kr 50.56 -63%

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Frequently asked questions

Is Danaos Corporation (DAC) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of $176.95 versus a price of $140.72, about +26% (undervalued).
What is the fair value of DAC?
Our model-based fair value for Danaos Corporation is $176.95 (as of Jul 12, 2026), built from audited fundamentals. The current price is $140.72.
What is the quality score of DAC?
Danaos Corporation has a Quality Score of 66/100. 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 revenue of Danaos Corporation (DAC)?
Danaos Corporation reported trailing-twelve-month revenue of about $1.0B (latest available figure, as of Jul 12, 2026).
What is the net profit margin of DAC?
The net profit margin of Danaos Corporation is about 49.9%, meaning it keeps roughly 49.9% of revenue as net income. Based on the latest reported figures.
Does Danaos Corporation pay a dividend?
Danaos Corporation currently shows a dividend yield of about 2.80% relative to its recent price (as of Jul 12, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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