International Seaways (INSW) was removed from the Russell 2000 Dynamic Index on June 27, an index reshuffle that can influence how certain funds and quantitative investors treat the stock.

Against that index exit, International Seaways’ share price has remained firm, with the latest close at $88.20 and short term momentum reflected in a 1 day share price return of 3.48% and a 7 day share price return of 13.40%. Over a longer stretch, the stock’s direction of travel has also been strong, with a 90 day share price return of 17.68% and an 87.70% share price return year to date, while total shareholder return stands at 159.89% over 1 year and roughly 7x over 5 years. This hints that investors have been reassessing both growth prospects and risk for the tanker operator.

If the recent move in International Seaways has you thinking more broadly about opportunities in shipping, it can be useful to see what else is out there and compare different business models. These include those of other capital intensive, asset heavy operators and more asset light platforms. You can widen your search beyond a single stock through tools such as the 19 top founder-led companies.

After such a strong run and a recent index removal, International Seaways now sits near analyst targets. The next step is to weigh what the current valuation implies about upside still ahead versus most of it already behind the stock.

Most Popular Narrative: 5% Undervalued

The most followed narrative currently pegs International Seaways’ fair value at $92.83, slightly above the recent $88.20 close, which sets up a relatively tight valuation gap for investors to interpret.

The company's strategy of renewing and modernizing its fleet, including the acquisition of newbuild eco-vessels and selling older tonnage, positions it to benefit from stricter environmental regulations, reducing operating costs and supporting sustained or improved net margins.

Want to understand why this narrative supports a higher fair value? It leans heavily on earnings power, margin resilience and a richer future earnings multiple.

Result: Fair Value of $92.83 (ABOUT RIGHT)

However, International Seaways’ story could look very different if regulatory costs rise faster than expected or if seaborne crude and product demand weakens over time.

Another View on International Seaways’ Valuation

The analyst narrative frames International Seaways as roughly fairly priced around $92.83 based on future earnings and a richer P/E in 2029. Our DCF model points in the opposite direction, with an estimate of future cash flow value around $56.95 per share, which suggests the stock may be priced well above that cash flow view. Which lens do you find more convincing for your own thesis?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out International Seaways for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 44 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals around International Seaways can be healthy, as they push you to look at the data yourself, weigh both sides and move decisively using the 3 key rewards and 4 important warning signs.

Looking for more investment ideas beyond International Seaways?

If the International Seaways story has sharpened your thinking, do not stop here. Use these focused stock lists to pressure test your next move.

• Target resilient opportunities by scanning companies with strong balance sheets and fundamentals using the solid balance sheet and fundamentals stocks screener (47 results).
• Hunt for potential value by reviewing a curated set of high quality stocks that currently look underpriced via the 44 high quality undervalued stocks.
• Prioritise stability and income by zeroing in on companies offering higher yields in the 9 dividend fortresses.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.