Assessing Residual Value

22 May 2017: Valuations are not straight forward in the LNG shipping industry, whether for individual vessels or entire companies. Unlike the tanker or dry bulk shipping segments, there are relatively few sale and purchase transactions between existing shipowners. Without useful data points, vessel values need to be derived. Typical valuation methodologies are earnings multiples, yield-based metrics on cash flows, or discounted cash flow analysis (“DCF”) based on forecasted earnings. Each methodology has advantages and disadvantages.   Please fill out the following form to access the full article.