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As part of our ongoing series at The Acquirer’s Multiple, each week we spotlight a stock from our Stock Screeners that might be a deeply undervalued gem hiding in plain sight. This week’s spotlight is Global Ship Lease, Inc. (NYSE: GSL).

Global Ship Lease owns and charters a fleet of mid-size and smaller containerships to leading liner companies under long-term, fixed-rate contracts. These arrangements provide stable, visible cash flows even amid volatile freight markets, while management’s disciplined capital allocation has driven consistent book value growth and shareholder returns.

What is IV/P (Intrinsic Value to Price)?

IV/P tells you whether a stock offers more intrinsic value than the price you are paying for it. The calculation blends earnings power, reinvestment efficiency, and capital-return policy to estimate intrinsic value — a conservative measure of what the business is worth.

IV/P above 1 suggests undervaluation.
IV/P below 1 suggests overvaluation.

The further above 1, the more value you may be getting per dollar invested.

GSL’s IV/P is 1.40, implying the market price reflects only about 70% of its estimated intrinsic value — suggesting meaningful upside potential as the shipping cycle normalizes and the company continues to compound equity value through debt reduction and disciplined fleet management.

Supporting Metrics

• Market Cap: ~$1.22 B
• Enterprise Value (EV): ~$1.87 B
• Free Cash Flow (TTM): ~$142 M
• Free Cash Flow Yield: ~7.6%
• Acquirer’s Multiple: 3.85×

At just 3.85× EV/FCF, GSL trades at a level typically reserved for deep-cyclical or distressed firms — yet its multi-year charter coverage, strong cash generation, and prudent balance sheet suggest a business far more resilient than its valuation implies.

Revenue & Profitability

• Revenue (TTM): ~$730 M
• Operating Income (TTM): ~$381 M
• Operating Margin: ~52%
• Net Income (TTM): ~$383 M
• Diluted EPS (TTM): ~$10.7

Revenue has grown steadily from ~$402 M in 2021 to over $730 M in the trailing twelve months, driven by long-term charters signed during the post-pandemic freight surge. Despite easing spot rates, GSL’s fixed contracts continue to deliver strong margins and record profitability.

Balance Sheet Strength

• Total Assets (2024): ~$2.37 B
• Cash & Equivalents: ~$168 M
• Total Debt: ~$685 M
• Shareholder Equity: ~$1.46 B
• Net Debt: ~$533 M
• Working Capital: ~$37 M

The balance sheet is conservatively positioned with declining leverage and ample liquidity. Debt reduction remains a core focus, with over $500 M repaid since 2021 and tangible book value per share climbing each year.

Capital Returns

• Dividend Yield: ~7.2%
• Capital Expenditure (TTM): ~$303 M

GSL has consistently rewarded shareholders through rising dividends and opportunistic share repurchases. Management’s capital allocation emphasizes long-term stability over speculative expansion, maintaining disciplined CapEx and strong free cash generation.

Why Might GSL Be Undervalued?

The market continues to treat Global Ship Lease as a cyclical shipper tied to volatile spot rates. In reality, its multi-year charter coverage, strong counterparties, and disciplined capital deployment have transformed it into a durable cash-flow compounder. With an IV/P of 1.40 and an Acquirer’s Multiple of just 3.85, GSL appears significantly undervalued relative to its intrinsic earning power and asset base.

Conclusion

With an IV/P of 1.40 and an Acquirer’s Multiple of 3.85, Global Ship Lease, Inc. (GSL) offers a compelling mix of yield, quality, and deep value. Its long-term contracts, rising book value, and disciplined debt management make it a standout in the shipping sector. For value investors seeking sustainable cash flows and margin of safety, GSL may be one of the market’s more overlooked opportunities hiding in plain sight.

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