Vessel Purchase Price vs Charter Income & Asset Value Tool

Purchase Price • Market Asset Value • Attached Charter • Net Cash Yield • Unlevered IRR • Income-Supported Value • Exit Value • Residual Risk

Vessel Purchase Price vs Charter Income & Asset Value Tool

Test whether a vessel purchase price is supported by current asset value, attached charter income and expected residual value. Simple mode compares purchase price with current market value and a level charter cash-flow case. Advanced mode models remaining charter coverage, re-chartering, owner OPEX, drydock/retrofit CAPEX, exit value, attached-charter premium or drag and return sensitivity.

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Fast asset-income screen: 10 inputs.Simple assumes the entered charter continues through the selected hold period with level hire, paid days, owner OPEX and annual reserve. It compares the price with both current asset value and the present value of future owner cash flow plus exit value.

AssetPrice vs market value

IncomeNet charter cash yield

ValueDCF-supported purchase price

Purchase Price & Charter Snapshot

Vessel purchase priceMillion currency units.

Current market asset valueMillion. User-entered broker/valuation basis.

Charter hireCurrency/day.

Hold / charter periodYears.

Paid hire days / yearAfter expected off-hire.

Charter commission% of hire revenue.

Owner vessel OPEXCurrency/day, applied over 365 days.

Annual drydock / CAPEX reserveMillion/year.

Expected gross sale value at exitMillion.

Required / hurdle returnAnnual %.

Purchase & Current Asset Value

Vessel purchase priceMillion.

Current market asset valueMillion, charter-free or chosen valuation basis.

Acquisition / closing costs% of purchase price.

Holding periodYears.

Required / hurdle returnAnnual unlevered return target.

Selling / disposal costs% of gross exit value.

Attached Charter

The attached-charter period can be shorter than the hold. After expiry, the model moves to the re-charter assumptions below.

Current charter hireCurrency/day.

Remaining charter periodYears.

Paid hire days / yearAfter expected off-hire.

Charter commission

Annual attached-charter hire escalation%/year.

Re-Charter After Current Contract

Re-charter hireCurrency/day after current charter expires.

Re-charter paid days / year

Re-charter commission

Annual re-charter hire growth%/year after re-charter begins.

Owner Cost Base

Base vessel OPEXCurrency/day over 365 days.

Annual OPEX inflation%/year.

Owner / management overheadMillion/year.

Recurring drydock / maintenance reserveMillion/year.

Exit / Residual Value

Exit valuation method

Gross exit / sale valueMillion, direct mode.

Annual asset-value change%/year, projected mode.

Minimum / recycling-value floorMillion.

Major Drydock / Retrofit CAPEX

Use	Year	CAPEX item	Amount (million)

Acquisition / Valuation Checks

Purchase price supported by S&P evidenceRecent comparable transactions or broker assessments have been reviewed. Charter attachment verifiedHire, remaining period, commission, options and novation/consent issues are understood. Charterer / counterparty reviewedModeled contract cash flow is not treated as risk-free merely because it is contracted. OPEX and off-hire basis reviewedOwner cost and paid-day assumptions reflect the vessel and contract. Drydock / special survey CAPEX includedKnown major cash requirements during the hold are captured. Re-charter assumption stress-testedPost-contract earnings are not simply held at today's attached-charter rate. Exit value independently challengedResidual value is not selected to force the desired return. Sale-with-charter mechanics reviewedNovation, regulatory allocation and transaction terms may affect value when a charter is attached.

Valuation boundary: this is an investment-screening model, not an independent vessel appraisal. Current market value, future charter rates, charterer performance, regulatory costs, technical condition, class status, sanctions, taxes and residual value can materially change realized value. The actual market may price a vessel above or below a discounted cash-flow indication.

Technical basis: vessel investment analysis commonly compares earnings, operating costs, second-hand values and residual/recycling values. Baltic Exchange investor indices combine earnings, OPEX, second-hand valuation and residual-value indicators, while commercial valuation platforms also model how an attached charter can affect vessel value. This tool therefore keeps current market value separate from income-supported value and shows both rather than treating one methodology as universally controlling.

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