A Look at Euronav’s Valuation and Analysts’ Recommendations
An In-Depth Look at Euronav's 1Q16 and Beyond
Valuation multiple
The forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple is used to value and compare crude tanker companies. Euronav’s (EURN) EV-to-EBITDA multiple is 5.74x as of April 27, 2016.
Past comparison
Euronav is currently trading below its average one-year multiple. Its average EV-to-EBITDA for the past year was 6.48x, whereas its highest and lowest multiples in the year were 8.53x and 4.92x, respectively. Generally, low valuation multiples follow stock rebounds.
Peer comparison
Euronav, which is trading at 5.74x, has a valuation multiple that is between those of its peers. The following are the EV-to-EBITDA multiples of EURN’s peers:
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Teekay Tankers (TNK) is trading at 5.48x.
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Tsakos Energy Navigation (TNP) is trading at 5.93x.
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Nordic American Tankers (NAT) is trading at 8.92x.
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Frontline (FRO) is trading at 6.19x.
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Analysts’ recommendations for EURN
Of the 21 analysts covering Euronav, 81% have given it “buy” recommendations, 14% have given it “hold” recommendations, and 5% have recommended “sells” for the stock.
The average target price for EURN is $14.82 compared to its current market price of $11.37 as of April 27, 2016. This implies a potential upside of 30.3%. Credit Suisse, ABN AMRO, and Clarksons Platou Securities have each issued EURN its highest target price of $20. EURN’s lowest target price of $10 comes from Fearnley Securities.
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