3 models fit Danaos Corporation Common Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Silver75
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionDanaos Corporation Common Stock (DAC)
Fair value (3 models)
$265
ACCE price target
$180
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 17:05 CEST; previously $355 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 17:05 CEST.
Price used: $158 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
40.2% below
+67.2% to fair value
ACCE score
84
out of 100
Analysts
100% buy
2 covering
P/E
5.4x
forward 6.5x
1-year return
+81.5%
Dividend yield
2.53%
Danaos Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Danaos owns and charters a fleet of container ships, leasing vessels to liner operators on multi-year time charters, with a large share of its capacity on fixed-rate contracts. That contracted cash flow is the core of the case: operating margin of 48.4% and gross margin of 70.8% reflect charter income that does not depend on spot freight rates. Revenue grew 4.7%, and ROE is 14.1%, a respectable return for a capital-heavy business. The stock trades at 5.4 times trailing earnings and 2.3 times forward earnings, a gap that implies the market expects earnings to fall sharply, so the first question for the PM is whether that decline is already in the numbers or still ahead. The valuation makes the name worth a closer look, but the thesis depends on charter renewal rates and the durability of the forward earnings estimate, which need verifying before anything else.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Short interest elevated
Short interest sits at 14.9% of float alongside 53.8% insider ownership, so the free float is thin and price moves can be exaggerated in either direction.
moderate
Revenue growth slowing sequentially
Revenue is up 4.7% year on year but down 4.6% quarter on quarter, below the 17.7% five-year revenue CAGR.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $322M, and the stock yields 11.2% on that cash flow.
Net margin of 51.3% and a 2.5% dividend yield show the business keeps a large share of what it earns.
Why it could disappoint
Revenue grew only 4.7% over the past year, well below its 17.7% five-year average pace.
Return on invested capital of 8.2% is modest, and the latest earnings missed expectations by 4.1%.
Only 2 analysts cover the stock, and the analyst mean target of $164.50 sits just 4.0% above the price, while the models in the consensus agree in only 3 of 5 cases.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 16, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where DAC's valuation models land
Price
$158.34
Model fair value
$265
Model range
$127 to $354
Fair value $265
Price $158
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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