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VV$VV$ Valuations

All values are for every vessel in the global fleet (>50,000). They are updated daily, objective and 100% confidential. Full supporting information, company, fleet and portfolio values are also provided.

The values are used by over 300 clients including leading banks, funds, owners, advisors and government regulators.

We cover all live and newbuild tankers, small tankers, bulkers, small dry, containers, LNG, LPG and Offshore.

Our Values

Market Value

DCF Value

Demolition Value

Book Value (Coming soon)

Replacement Value (Coming soon)

VV$ Market Value

Definition: What a vessel can be bought or sold for in the market.

Methodology: Values are driven by transactions, vessel specifications and changes in market sentiment. Market data is updated in real-time and the algorithms are recalibrated nightly. This ensures closest possible fit to changing market conditions. For MV methodology click here.

Functionality: Search any vessel, owner, yard or portfolio. Instantly retrieve todays and historical values. View transactions, rates, ownership, specifications and much more. Export time series and valuation certificates.

Key Features

Objective

The values are driven by real-time data and adaptive algorithms. They are not biased by subjective opinion. They are provided with full supporting information (i.e. transactions, specifications) and historical time series. Valuation accuracy is measured and reported.

Accurate

Our goal is to most accurately represent what you can buy or sell vessels for in the market. Accuracy is measured by comparing our values from the day before each transaction against the achieved price. This is used to support our values and drive continual optimisation of the algorithms. We are the only vessel valuation provider to measure and report our accuracy for each transaction.

Confidential

All use of the service is 100% confidential. This allows our clients to investigate the market without letting the market know.

Instant and always available

Values are provided instantly, with real-time updating of market data and nightly recalibration of the algorithms. The service is available 24 hours a day, 365 days a year and is fully supported by our in house teams.

Instant valuation certificates

Instantly order and receive market valuation certificates

Example vessel valuation page

VV$ Valuation Page Chart VV$ Valuation Page Table

Example company valuation page

VV$ Valuation Page Chart VV$ Valuation Page Table

VV$ DCF Value

Definition: The estimated long term value of a vessel calculated as the discounted cash flow of its projected revenues and costs.

Methodology: The model calculates the DCF value through the revenue, cost, commission and other assumptions provided by VV for each vessel. These assumptions are vessel specific to reflect the sometimes significant differences in earnings potential and running costs for vessels of the same type but of different specification and quality. The assumptions can be overwritten by the user to calculate custom DCF values. Full annual cash flows, including survey timings and costs, are also provided. For DCF methodology click here

Functionality: Search any vessel and instantly retrieve todays DCF value and projected cash flows based on VV’s assumptions. Modify assumptions and/or add fixed charters to calculate custom DCF value. Compare to the vessel’s market values, run sensitivity analysis, find breakeven rates to different costs and/or discount rates, and publish DCF valuation certificates.

Key Features

Full assumptions provided

We have researched, tested and confirmed all DCF assumptions (i.e. earning, OPEX, survey costs, commissions) with a wide variety of owners, operators, advisors and financers. These assumptions are used to provide the VV DCF values.

Create a customised DCF value

All assumptions can be overwritten by the user. This can be used for modelling, sensitivity analysis and calculation custom DCF values. DCF certificates clearly show which assumptions have been modified.

Daily Depreciation

The model utilises the precise age of the vessel, estimating the remaining trading life of the vessel to the nearest day. Automated values are recalculated daily to take account of this. In effect, daily deprecation, rather than annual, is built into the calculation.

Goal Seek Tool

Reverse the calculation by computing the implied (breakeven) charter or discount rate from a specified value.

Instant and flexible value analysis charts

DCF charts dynamically update as values are calculated, allowing you to visualise and measure how any single parameter can significantly affect the value. Providing in-depth analysis to any input changes, the charts display revenue, expenditure, discount, discounted cash flow and discounted residual value.

Valuation certificates

Instantly order and receive DCF valuation certificates

Example DCF valuation page

VV$ Company Page Chart VV$ Company Page Table

VV$ Demolition Value

Definition: What a vessel can be sold for in the scrap market. Shown for Indian sub-continent and Chinese scrap yards.

Methodology: Scrap value is the lightweight (ldt) of the vessel (i.e. the weight of steel) multiplied by the current scrap price in either the Indian sub-continent and China. Ldt’s are provided for all vessels. When not reported then sister ship ldt or estimated (though regression on type, size, age and country of build) are used.

Functionality: Scrap values provided for all vessels, company fleets and portfolios.

VV$ Book Value

Definition: The accountant’s value and what often appears on the balance sheet of a ship owning company. Coming soon.

VV$ Replacement Value

Definition:The cost to replace a vessel with a newbuild ship of equivalent specifications. Coming soon.

VV$ Matrix

Definition: Matrix of market values for generic (standard specification) vessels by type and year of build.

Methodology: Market valuation methodology but for generic rather than specific vessels.

Functionality: Quickly view values across different types and ages. View daily historical matrix’s. Analyse % change over any time period. Export to excel.

Example matrix page

VV$ Matrix Page

VV$ Fixed Age Analysis

Definition: The Fixed Age Analysis (FAA) module is an interactive tool that allows analysis of the historical distribution (i.e. statistical probability) of market values for different generic vessel types and ages (with intra year depreciation removed)

Functionality: The user selects the vessel type (i.e. Capesize, VLCC, Feedermax, VLGC etc) and the historical period to be analysed. The charts display the relevant data in an interactive form. There are two charts showing different versions of the analysis; a fan chart, and a heatmap to which there is appended a Loan Tranche Calculator.

The fan chart shows:

  • The historical frequency of values for fixed age vessels of the selected type, broken down by vessel year of age (in years) and grouped into deciles (10 percentiles)
  • The historical median for each age of vessel and time period selected
  • The current values and preceding years values (as per 1st Jan of each year) for each age of vessel.

The Loan Tranche Calculator also allows the user to input and overlay one or more loans against the historical value distribution. This can be used for assessment of the potential asset value risk of a vessel purchase or financing. The decile information could be used by portfolio managers to get an idea of their future exposure at a pre-set level of confidence. Please see an example below for illustration purposes.

VV$ Fixed Age Report Chart

By clicking on any one year of age on the horizontal axis of the fan chart, the user can automatically display the price development of a vessel of that fixed age, since 2007, soon earlier, against the loan outstanding of the year (the dotted line). This allows the user to immediately get an historical perspective of a loan outstanding or balloon.

VV$ Fixed Age Report Fixed Age Vessel

The heatmap shows:

  • The same data as the fan chart but displayed as a heatmap.
  • The historical frequency of values are grouped into cells which are defined by the vessel age and value range
  • The darker the shading of the cells, the higher the relative number of historical values within the specified value ranges
  • The percentage of valuations for a specific age of vessel that fall between a value range can be seen by pointing the mouse at the relevant cell.
  • It also shows the percentage of valuations that are above or equal to a value range for a specific age of vessel (i.e. the historical probability of the value being equal to or above the specified value range).
VV$ Fixed Age Report Heatmap

VV$ Recovery Rates

Definition: The Recovery Rates tool provides a compilation of "forced" sales, such as judicial auctions or bank-initiated sales, which have been reported in the industry media since 2007.

Methodology: Recovery rates calculated through comparison of the reported price of the forced transaction to the VV valuation of the vessel at the reported date of the transaction calculates the recovery rate.

Functionality: Interactive list of transactions showing forced sales by vessels, sale type (i.e. auction, bank sale), VV market value at time of sale, sale price achieved and Recovery Rate. Graphical distribution by vessel type and recovery rate density provided.

VV$ Recovery Rates Chart

VV$ Market

Freight: Index charter rates by vessel type (i.e. TCA’s) for tankers, bulkers, containers and LPG. These are derived from charter rates reported by brokers and converted into TCE’s

VV Indices: These are synoptic indicators of market vessel values. Much like the well-known global equities indices, such as the Dow Jones Industrial Average or the FTSE 100, their purpose is to give a general picture of the state of the Sale & Purchase market rather than specific information about any one vessel or vessel type. They are measured in US dollars per unit of cargo-carrying capacity (DWT, TEU, etc.)

Bunker: The costs of different bunker (marine fuel) types in different locations.

VV$ Stats

Definition: Summary statistics showing ownership by vessel type/company, sales stats by year/number/$, fleet stats.

Functionality

Companies: Search and compare owners by vessel type, fleet size, newbuilding’s and value.

Sales Stats: View a breakdown of total value of annual sales and overall fleet by vessel type.

Fleet Stats: Definition of vessel types, overall fleet size, average age and total market value. Split the fleet by live and newbuild orders for each ship type. See the number of future and past deliveries by year.

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