|Publication||Maritime investment appraisal and budgeting|
University of Hamburg
Maritime financial management, ship valuation, market approach, DCF-approach
This chapter presents the basic principles of ship valuation. First, we illustrate the market approach (“mark-to-market”). Second, we present the Long Term Asset Value (LTAV) method as an example for the DCF-approach (“mark-to-model”). Third, we discuss necessary conditions for the equivalence of market prices and fundamental values of ships. Finally, we compare the valuation levels of listed shipping companies with a matched sample of manufacturing firms.