Golden Ocean Group Valuation

Q: What is the Fair Price of 0RII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

0RII (NOK122.58) is trading below our estimate of [[fair value]] (NOK639.32)

Is 0RII undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0RII when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0RII (NOK122.58) is trading below our estimate of fair value (NOK639.32)

Significantly Below Fair Value: 0RII is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0RII?

Key metric: As 0RII is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0RII. This is calculated by dividing 0RII's market cap by their current earnings.
What is 0RII's PE Ratio?
PE Ratio	10.4x
Earnings	US$214.08m
Market Cap	US$2.24b

0RII key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.7x
Enterprise Value/EBITDA	8.1x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does 0RII's PE Ratio compare to its peers?

The above table shows the PE ratio for 0RII vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	12.9x
CKN Clarkson	14.7x	2.5%	UK£1.2b
ICGC Irish Continental Group	14.4x	n/a	UK£748.8m
IDS International Distribution Services	13.2x	28.9%	UK£3.3b
FGP FirstGroup	9.4x	9.9%	UK£892.5m
0RII Golden Ocean Group	10.4x	16.2%	NOK 2.2b

Price-To-Earnings vs Peers: 0RII is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (12.9x).

Price to Earnings Ratio vs Industry

How does 0RII's PE Ratio compare vs other companies in the European Shipping Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 0RII is expensive based on its Price-To-Earnings Ratio (10.4x) compared to the European Shipping industry average (7.7x).

Price to Earnings Ratio vs Fair Ratio

What is 0RII's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0RII PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.4x
Fair PE Ratio	13.5x

Price-To-Earnings vs Fair Ratio: 0RII is good value based on its Price-To-Earnings Ratio (10.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0RII forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	NOK 122.58	NOK 166.13 +35.5%	16.9%	NOK 199.69	NOK 138.34	n/a	4
Nov ’25	NOK 118.23	NOK 173.13 +46.4%	13.3%	NOK 198.21	NOK 137.31	n/a	4
Oct ’25	NOK 138.02	NOK 172.58 +25.0%	8.4%	NOK 191.51	NOK 153.89	n/a	4
Sep ’25	NOK 130.56	NOK 165.99 +27.1%	9.9%	NOK 190.21	NOK 146.02	n/a	5
Aug ’25	NOK 134.66	NOK 175.24 +30.1%	8.9%	NOK 191.01	NOK 149.05	n/a	5
Jul ’25	NOK 149.14	NOK 173.23 +16.2%	10.0%	NOK 189.98	NOK 142.92	n/a	5
Jun ’25	NOK 152.23	NOK 167.74 +10.2%	9.3%	NOK 187.04	NOK 143.22	n/a	5
May ’25	NOK 156.40	NOK 169.18 +8.2%	7.7%	NOK 186.83	NOK 147.27	n/a	5
Apr ’25	NOK 136.70	NOK 143.51 +5.0%	17.9%	NOK 164.59	NOK 95.57	n/a	5
Mar ’25	NOK 140.72	NOK 143.51 +2.0%	17.9%	NOK 164.59	NOK 95.57	n/a	5
Feb ’25	NOK 113.37	NOK 124.33 +9.7%	13.4%	NOK 136.71	NOK 94.65	n/a	5
Jan ’25	NOK 99.24	NOK 111.09 +11.9%	11.0%	NOK 125.43	NOK 92.71	n/a	6
Dec ’24	NOK 102.50	NOK 106.26 +3.7%	16.0%	NOK 123.83	NOK 76.45	n/a	6
Nov ’24	NOK 80.37	NOK 106.95 +33.1%	13.4%	NOK 122.87	NOK 83.77	NOK 118.23	4
Oct ’24	NOK 84.35	NOK 93.52 +10.9%	12.4%	NOK 105.98	NOK 79.48	NOK 138.02	4
Sep ’24	NOK 77.50	NOK 93.52 +20.7%	12.4%	NOK 105.98	NOK 79.48	NOK 130.56	4
Aug ’24	NOK 78.96	NOK 97.45 +23.4%	12.4%	NOK 115.83	NOK 85.61	NOK 134.66	4
Jul ’24	NOK 80.90	NOK 138.64 +71.4%	42.4%	NOK 238.29	NOK 94.23	NOK 149.14	4
Jun ’24	NOK 79.41	NOK 116.74 +47.0%	18.7%	NOK 149.60	NOK 92.96	NOK 152.23	4
May ’24	NOK 98.00	NOK 109.05 +11.3%	20.9%	NOK 142.02	NOK 81.15	NOK 156.40	4
Apr ’24	NOK 98.52	NOK 109.05 +10.7%	20.9%	NOK 142.02	NOK 81.15	NOK 136.70	4
Mar ’24	NOK 109.40	NOK 109.05 -0.3%	20.9%	NOK 142.02	NOK 81.15	NOK 140.72	4
Feb ’24	NOK 95.72	NOK 110.01 +14.9%	17.6%	NOK 139.70	NOK 90.80	NOK 113.37	4
Jan ’24	NOK 85.94	NOK 101.80 +18.5%	20.1%	NOK 137.04	NOK 88.10	NOK 99.24	4
Dec ’23	NOK 81.63	NOK 106.45 +30.4%	19.4%	NOK 141.60	NOK 91.03	NOK 102.50	4
Nov ’23	NOK 88.35	NOK 116.26 +31.6%	17.9%	NOK 151.41	NOK 97.33	NOK 80.37	4

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.