Assessing Danaos (DAC) Valuation After Strong 2025 Results And New Dividend

Why Danaos is in Focus After Its Latest Results

Danaos (DAC) just released its fourth quarter and full year 2025 results alongside a new dividend declaration, giving investors fresh data on profitability and cash returns to shareholders.

The company reported quarterly sales of US$266.27 million and net income of US$117.91 million, and declared a US$0.90 per share dividend payable in early March 2026.

See our latest analysis for Danaos.

Danaos shares trade at US$107.31 after a 1 day share price return of a 0.68% decline. However, the 30 day share price return of 8% and 1 year total shareholder return of 31.61% suggest momentum has been building around its earnings and dividend updates.

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With Danaos trading at US$107.31, showing a 38% intrinsic discount and a price above the current analyst target, the big question is simple: are you looking at a value opportunity or a stock where the market already prices in future growth?

Most Popular Narrative: 3.2% Overvalued

At $107.31, Danaos sits slightly above the most followed fair value estimate of $104, which is built on detailed revenue, earnings, and discount rate assumptions.

The analysts have a consensus price target of $101.5 for Danaos based on their expectations of its future earnings growth, profit margins and other risk factors.

In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $915.2 million, earnings will come to $381.3 million, and it would be trading on a PE ratio of 5.4x, assuming you use a discount rate of 10.8%.

Read the complete narrative.

Curious what has to happen for that fair value to make sense? The narrative leans on shrinking revenue, still strong margins, and a future earnings multiple that stands out. The exact mix of these moving parts is where the story gets interesting.

Result: Fair Value of $104 (OVERVALUED)

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

However, those assumptions could be challenged if Danaos leverages its US$3.6b backlog and low net debt to adjusted EBITDA of 0.3x to support steadier earnings.

Find out about the key risks to this Danaos narrative.

Another Angle on Danaos' Valuation

That $104 fair value from the narrative says Danaos looks 3.2% overvalued, yet on simple P/E the story is very different. At around 4x earnings versus 15.7x for peers and a fair ratio of 6.8x, the current price implies a wide gap. Is that caution or opportunity?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With mixed signals on value, risk and reward, it makes sense to look at the full picture yourself and decide where you stand. You can start by weighing up 2 key rewards and 1 important warning sign.

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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.

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