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    A Look At Frontline (FRO) Valuation After Securing High Rate One Year VLCC Charters

    Simply Wall St·01/25/2026 21:11:58
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    What Frontline’s new VLCC charters mean for investors

    Frontline (FRO) has drawn fresh attention after signing one-year time charter-out agreements for seven very large crude carriers at daily rates of US$76,900, with charter periods beginning between late January and April 2026.

    These fixtures secure contracted revenue on a portion of the fleet at levels that management describes as not seen for decades. At the same time, the company is keeping most vessels exposed to spot rates, which can move sharply in the tanker market.

    See our latest analysis for Frontline.

    Frontline’s latest VLCC charters come on the back of a strong 30-day share price return of 19.49% and a 1-year total shareholder return of 70.72%, which points to building momentum supported by very high recent contract rates.

    If you are looking beyond tankers and want to see what else is capturing attention, it could be a good moment to check out aerospace and defense stocks as another source of ideas.

    With Frontline shares up 70.72% over the past year, trading at US$26.06 and at a 15.12% discount to a US$30.00 target, plus an indicated intrinsic discount of about 60.70%, is there still a genuine opportunity here, or is the market already baking in future growth?

    Most Popular Narrative: 11.7% Undervalued

    Frontline’s most followed valuation narrative points to a fair value of $29.50 per share versus the current $26.06 price, framing the recent VLCC charters within a still discounted story.

    The increase in compliant oil exports (i.e., non-sanctioned sources from the US, Brazil, Guyana, and the Middle East) is driving longer trade routes, especially with more US Gulf exports heading to Asia. This is likely to increase tonne-miles and vessel utilization, supporting higher top-line revenue for Frontline.

    Read the complete narrative.

    Curious how a shrinking revenue line, rising margins, and a lower future P/E assumption can still add up to an undervalued call? The full narrative joins those moving parts into one valuation roadmap.

    Result: Fair Value of $29.50 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, higher environmental costs or a prolonged slump in spot tanker rates could quickly challenge the idea that Frontline’s current pricing still appears conservative.

    Find out about the key risks to this Frontline narrative.

    Build Your Own Frontline Narrative

    If this view does not quite fit how you see Frontline, you can review the same data, shape your own thesis, and Do it your way in just a few minutes.

    A great starting point for your Frontline research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    If Frontline has your attention, do not stop here. Use the Simply Wall Street Screener to quickly uncover fresh ideas across sectors, themes, and return profiles.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.