Is Danaos Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Danaos Corp. has moved from expensive to attractive, indicating a shift towards a more favorable assessment. The company appears undervalued, supported by a P/E ratio of 4, a Price to Book Value of 0.57, and an EV to EBITDA of 3.16. In comparison to peers, Danaos Corp. has a significantly lower P/E ratio than Golar LNG Ltd. at 22.93 and Matson, Inc. at 6.73, further reinforcing its attractive valuation.
Despite a recent dip in stock performance with a 1-week return of -0.37% compared to the S&P 500's 1.05%, Danaos Corp. has shown strong year-to-date growth of 17.96%, outpacing the S&P 500's 12.22%. Over the past five years, the company has delivered an impressive return of 1239.72%, significantly exceeding the S&P 500's 96.61%, which suggests a robust long-term investment potential.