TRMD Valuation

Torm PLC

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21.750

+0.1(0.462%)1D

Overview
Forecast
Valuation
Earnings

TRMD Relative Valuation

TRMD'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, TRMD is overvalued; if below, it's undervalued.

Historical Valuation

Torm PLC (TRMD) is now in the Overvalued zone, suggesting that its current forward PS ratio of 2.66 is considered Overvalued compared with the five-year average of 6.48. The fair price of Torm PLC (TRMD) is between 11.13 to 19.64 according to relative valuation methord. Compared to the current price of 21.75 USD , Torm PLC is Overvalued By 10.76%.

Relative Value

Fair Zone

11.13-19.64

Current Price：21.75

10.76%

Overvalued

9.18

Trailing

Forward

6.42

EV/EBITDA

Torm PLC. (TRMD) has a current EV/EBITDA of 6.42. The 5-year average EV/EBITDA is 5.01. The thresholds are as follows: Strongly Undervalued below 1.24, Undervalued between 1.24 and 3.12, Fairly Valued between 6.89 and 3.12, Overvalued between 6.89 and 8.78, and Strongly Overvalued above 8.78. The current Forward EV/EBITDA of 6.42 falls within the Historic Trend Line -Fairly Valued range.

8.78

EV/EBIT

Torm PLC. (TRMD) has a current EV/EBIT of 8.78. The 5-year average EV/EBIT is 40.74. The thresholds are as follows: Strongly Undervalued below -231.46, Undervalued between -231.46 and -95.36, Fairly Valued between 176.84 and -95.36, Overvalued between 176.84 and 312.94, and Strongly Overvalued above 312.94. The current Forward EV/EBIT of 8.78 falls within the Historic Trend Line -Fairly Valued range.

2.66

Torm PLC. (TRMD) has a current PS of 2.66. The 5-year average PS is 1.68. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 1.03, Fairly Valued between 2.33 and 1.03, Overvalued between 2.33 and 2.98, and Strongly Overvalued above 2.98. The current Forward PS of 2.66 falls within the Overvalued range.

5.31

P/OCF

Torm PLC. (TRMD) has a current P/OCF of 5.31. The 5-year average P/OCF is 4.05. The thresholds are as follows: Strongly Undervalued below 0.45, Undervalued between 0.45 and 2.25, Fairly Valued between 5.85 and 2.25, Overvalued between 5.85 and 7.66, and Strongly Overvalued above 7.66. The current Forward P/OCF of 5.31 falls within the Historic Trend Line -Fairly Valued range.

6.61

P/FCF

Torm PLC. (TRMD) has a current P/FCF of 6.61. The 5-year average P/FCF is 4.25. The thresholds are as follows: Strongly Undervalued below -9.89, Undervalued between -9.89 and -2.82, Fairly Valued between 11.31 and -2.82, Overvalued between 11.31 and 18.38, and Strongly Overvalued above 18.38. The current Forward P/FCF of 6.61 falls within the Historic Trend Line -Fairly Valued range.

Torm PLC (TRMD) has a current Price-to-Book (P/B) ratio of 1.01. Compared to its 3-year average P/B ratio of 1.37 , the current P/B ratio is approximately -26.35% higher. Relative to its 5-year average P/B ratio of 1.09, the current P/B ratio is about -7.25% higher. Torm PLC (TRMD) has a Forward Free Cash Flow (FCF) yield of approximately 10.81%. Compared to its 3-year average FCF yield of 13.83%, the current FCF yield is approximately -21.86% lower. Relative to its 5-year average FCF yield of 1.54% , the current FCF yield is about 599.81% lower.

1.01

P/B

Median3y

1.37

Median5y

1.09

10.81

FCF Yield

Median3y

13.83

Median5y

1.54

Competitors Valuation Multiple

The average P/S ratio for TRMD's competitors is 2.35, providing a benchmark for relative valuation. Torm PLC Corp (TRMD) exhibits a P/S ratio of 2.66, which is 13.58% above the industry average. Given its robust revenue growth of -27.99%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Himalaya Shipping Ltd

Performance Decomposition

Market capitalization of TRMD decreased by 33.93% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.32 to 6.57.

The secondary factor is the Revenue Growth, contributed -27.99%to the performance.

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

-27.99%

437.70M → 315.20M

Revenue Growth

-58.03%

44.37 → 18.62

Margin Expansion

52.09%

4.32 → 6.57

P/E Change

-33.93%