ABSTRACT
This study calculates the intrinsic value of the dry bulk shipping company by using the free cash flow (FCF) model[1]. This intrinsic value provides a solution for investors to overcome the stock market mispricing.
Furthermore, this study uses Freight Forward Agreement (FFA) prices as the future prospect indicators for the dry bulk shipping industry. Usually, wrong estimating future prospects result in wrong valuation outcomes. By adding this future indicator, the accuracy of valuation outcome can be better enhanced.
Finally, by using average stock market price as criteria, this study compares the biases among the different valuation models. The FCF model coupling with the FFA prices as future indicators has a minimum bias. It explains that FCF model coupling with the FFA prices is more effective for the investors to calculate the intrinsic value.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0903108-085527 |
| Date | 03 September 2008 |
| Creators | Yang, Jeng-Shiun |
| Contributors | none, David S. Shyu, Der-Ming Lieu |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0903108-085527 |
| Rights | not_available, Copyright information available at source archive |
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