TORM (CPSE:TRMD A) Could Be 4% Undervalued As Board Changes Follow Oaktree Exit

Board exits linked to Oaktree’s departure

TORM (CPSE:TRMD A) is back in focus after Christopher Helmut Boehringer resigned from the board on 9 October 2026, following Oaktree Capital Management and its affiliates exiting their ownership stake.

The shake-up caps a busy October that also included a new director appointment and a completed follow-on equity offering worth about US$253.5 million in Class A common shares.

TORM’s latest board changes and follow-on equity raise come after a powerful run, with the share price up 34.44% over 90 days and delivering a 130.51% total shareholder return over one year. However, short-term momentum has eased with the recent 1-day and 7-day share price declines.

Scan past TORM’s recent board shifts and equity raise to see how other shipping and energy names with similar momentum line up in our hand-picked 189 high quality undervalued stocks list.

TORM has delivered powerful returns and has just raised fresh capital, which suggests a robust operation. The real question now is whether that strength is already fully reflected in today’s share price.

Most Popular Narrative: 4% Undervalued

TORM last closed at DKK258.8, sitting just under a narrative fair value of DKK269.3 that is built on detailed revenue, margin and discount rate assumptions.

Closure of refining capacity in Europe and on the U.S. West Coast is structurally increasing import needs for middle distillates and gasoline, supporting sustained high utilization and stronger freight rates, which should translate into higher revenue and more resilient EBITDA over the cycle.

Lengthening trade routes driven by increased East to West flows, Red Sea disruptions and rerouting around the Cape of Good Hope are lifting ton-mile demand faster than vessel supply, underpinning elevated TCE levels and expanding operating margins and earnings power.

See why 8 investors see TORM as 4% undervalued.

Result: Fair Value of DKK269.3 (UNDERVALUED)

Still, the TORM narrative can break if geopolitical disruptions ease and trade routes shorten, or if a larger incoming tanker fleet weighs on freight rates.

Find out about the key risks to this TORM narrative.

Another View: TORM Through A Cash Flow Lens

The narrative fair value of DKK269.3 suggests TORM is modestly undervalued. A different tool, the SWS DCF model, points the other way. On that framework, the shares trade above an estimated future cash flow value of DKK205.05, which screens as overvalued on cash flows. Which signal do you give more weight to?

Our DCF model is fully transparent, showing each assumption on growth, margins and discount rate, so you can judge whether the cash flow output feels realistic for TORM or too conservative. Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out TORM for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 189 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals on TORM’s value and risks so far. If you want to move quickly and rely on your own judgement, weigh both sides carefully by checking the 2 key rewards and 3 important warning signs.

Looking for more TORM sized investment ideas?

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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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