Webinars on financial analysis and modelling of shipping investments:
Previous webinars on financial analysis and modeling of ship investments are available as replays. We also arrange online meetings with demonstrations on how to use the Pacoship 2.0 application most efficiently.
Webinar: Financial Analysis of Ship Investments
The purpose of Financial Analysis of Ship Investments is to maximize return on equity invested by evaluating all relevant factors in order to structure and execute the best possible deal:
- Net Present Value (NPV) is calculated by discounting the cash flow using a discount rate reflecting required return (cost of debt and equity).
- Internal Rate of Return (IRR) is the discount rate that gives NPV = 0.
- We also take into account volatility of ship prices and charter rates and the value of flexibility (the value of optionality).
KEY FACTORS EVALUATED ARE:
Ship purchase price:
- What type of ship to buy (category, size, age)
- Where are we in the cycle ? “When is it a good time to buy?”
- Availability and mix of debt and equity
Cash flow from earnings:
- Employment: Term of charter = Market Risk and to whom = Credit Risk
Ship sale price (residual value):
- Timing of exit – remaining economic life (value of optionality)
Required Return on Equity :
- Risk/Return evaluation
Debt Capacity :
- % of debt
- Cost of debt
- Repayment schedule
- Trade out rate(s)
Webinar: Introduction to Pacoship 2.0
Step by step introduction to financial modelling of shipping investments and fiancing with Pacoship 2.0.