HSHP Valuation

Himalaya Shipping Ltd

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7.840

+0.14(1.818%)1D

HSHP Relative Valuation

HSHP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HSHP is overvalued; if below, it's undervalued.

Historical Valuation

Himalaya Shipping Ltd (HSHP) is now in the Undervalued zone, suggesting that its current forward PS ratio of 7.84 is considered Undervalued compared with the five-year average of -70.40. The fair price of Himalaya Shipping Ltd (HSHP) is between 14.84 to 17.11 according to relative valuation methord. Compared to the current price of 7.84 USD , Himalaya Shipping Ltd is Undervalued By 47.16%.

Relative Value

Fair Zone

14.84-17.11

Current Price：7.84

47.16%

Undervalued

0.00

Trailing

Forward

9.22

EV/EBITDA

Himalaya Shipping Ltd. (HSHP) has a current EV/EBITDA of 9.22. The 5-year average EV/EBITDA is -18.10. The thresholds are as follows: Strongly Undervalued below -106.26, Undervalued between -106.26 and -62.18, Fairly Valued between 25.97 and -62.18, Overvalued between 25.97 and 70.05, and Strongly Overvalued above 70.05. The current Forward EV/EBITDA of 9.22 falls within the Historic Trend Line -Fairly Valued range.

12.46

EV/EBIT

Himalaya Shipping Ltd. (HSHP) has a current EV/EBIT of 12.46. The 5-year average EV/EBIT is -15.95. The thresholds are as follows: Strongly Undervalued below -106.78, Undervalued between -106.78 and -61.36, Fairly Valued between 29.47 and -61.36, Overvalued between 29.47 and 74.88, and Strongly Overvalued above 74.88. The current Forward EV/EBIT of 12.46 falls within the Historic Trend Line -Fairly Valued range.

7.84

Himalaya Shipping Ltd. (HSHP) has a current PS of 7.84. The 5-year average PS is 1.96. The thresholds are as follows: Strongly Undervalued below -0.88, Undervalued between -0.88 and 0.54, Fairly Valued between 3.38 and 0.54, Overvalued between 3.38 and 4.81, and Strongly Overvalued above 4.81. The current Forward PS of 7.84 falls within the Strongly Overvalued range.

5.34

P/OCF

Himalaya Shipping Ltd. (HSHP) has a current P/OCF of 5.34. The 5-year average P/OCF is -10.63. The thresholds are as follows: Strongly Undervalued below -65.65, Undervalued between -65.65 and -38.14, Fairly Valued between 16.87 and -38.14, Overvalued between 16.87 and 44.38, and Strongly Overvalued above 44.38. The current Forward P/OCF of 5.34 falls within the Historic Trend Line -Fairly Valued range.

5.68

P/FCF

Himalaya Shipping Ltd. (HSHP) has a current P/FCF of 5.68. The 5-year average P/FCF is 0.52. The thresholds are as follows: Strongly Undervalued below -7.07, Undervalued between -7.07 and -3.28, Fairly Valued between 4.32 and -3.28, Overvalued between 4.32 and 8.12, and Strongly Overvalued above 8.12. The current Forward P/FCF of 5.68 falls within the Overvalued range.

Himalaya Shipping Ltd (HSHP) has a current Price-to-Book (P/B) ratio of 2.29. Compared to its 3-year average P/B ratio of 1.90 , the current P/B ratio is approximately 20.89% higher. Relative to its 5-year average P/B ratio of 1.89, the current P/B ratio is about 21.50% higher. Himalaya Shipping Ltd (HSHP) has a Forward Free Cash Flow (FCF) yield of approximately 10.01%. Compared to its 3-year average FCF yield of -98.23%, the current FCF yield is approximately -110.19% lower. Relative to its 5-year average FCF yield of -88.54% , the current FCF yield is about -111.30% lower.

2.29

P/B

Median3y

1.90

Median5y

1.89

10.01

FCF Yield

Median3y

-98.23

Median5y

-88.54

Competitors Valuation Multiple

The average P/S ratio for HSHP's competitors is 62.63, providing a benchmark for relative valuation. Himalaya Shipping Ltd Corp (HSHP) exhibits a P/S ratio of 7.84, which is -87.48% above the industry average. Given its robust revenue growth of -4.17%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

HSHP.N

Himalaya Shipping Ltd

International Seaways Inc

51.23

-24.00%

2.53B

Performance Decomposition

Market capitalization of HSHP increased by 26.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.82 to 55.18.

The secondary factor is the Revenue Growth, contributed -4.17%to the performance.

Overall, the performance of HSHP in the past 1 year is driven by P/E Change. Which is more unsustainable.

-4.17%

31.20M → 29.90M

Revenue Growth

-83.27%

22.00 → 3.68

Margin Expansion

113.69%

25.82 → 55.18

P/E Change

26.25%