Wondering if Star Bulk Carriers is still good value after such a strong run, or if you are turning up late to the party? This breakdown will help you decide whether the current price makes sense.
The stock has climbed 2.8% over the last week, 12.4% over the past month, and is up 31.9% year to date, adding to an impressive 351.3% gain over five years that has put it firmly on value hunters radar.
Recent moves have been driven less by a single headline and more by a steady drumbeat of optimism around dry bulk shipping, with improving freight rate expectations and tighter vessel supply dynamics lifting sentiment across the sector. At the same time, investors are weighing cyclical risks and global trade uncertainty, which makes a closer look at valuation especially important now.
On our checks Star Bulk Carriers currently scores a 3 out of 6 valuation score. This suggests pockets of undervaluation but also areas where the market might be more fairly priced. Next, we will unpack the standard valuation methods investors rely on before exploring a more powerful way to frame what the stock is really worth.
Star Bulk Carriers delivered 30.2% returns over the last year. See how this stacks up to the rest of the Shipping industry.
The Discounted Cash Flow model estimates what a business is worth by projecting its future cash flows and then discounting them back to today to reflect risk and the time value of money. For Star Bulk Carriers, this approach starts with last twelve month free cash flow of about $237 million and builds out a two stage Free Cash Flow to Equity model.
Analysts and internal estimates see free cash flow rising steadily, with projections such as $428 million in 2026 and around $1.49 billion by 2035, all expressed in $. Earlier years are informed by analyst forecasts, while the later years are extrapolated by Simply Wall St using a slowing growth profile as the business matures.
When all of these discounted cash flows are added together, the DCF model indicates a fair value of roughly $111.18 per share. Compared with the current share price, this implies the stock is trading at about an 81.6% discount to its estimated intrinsic value, which suggests there could be meaningful upside if these cash flow assumptions prove accurate.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Star Bulk Carriers is undervalued by 81.6%. Track this in your watchlist or portfolio, or discover 907 more undervalued stocks based on cash flows.
SBLK Discounted Cash Flow as at Dec 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Star Bulk Carriers.
For profitable companies like Star Bulk Carriers, the price to earnings ratio is a useful way to gauge how much investors are willing to pay today for each dollar of current earnings, making it a straightforward lens for comparing valuation. What counts as a normal or fair PE depends heavily on how fast earnings are expected to grow and how risky those earnings are, with faster growing or lower risk businesses typically justifying higher multiples.
Star Bulk currently trades on a PE of 37.88x, which sits well above the broader shipping industry average of about 10.08x and also above the peer group average of around 5.22x. Simply Wall St goes a step further by estimating a Fair Ratio of 43.96x, a proprietary view of what the PE should be once factors like expected earnings growth, profitability, industry, market cap and company specific risks are accounted for. This tailored Fair Ratio can be more informative than simple peer or industry comparisons because it adjusts for the fact that not all shipping companies share the same outlook or risk profile.
Since the current PE of 37.88x is below the Fair Ratio of 43.96x, this lens indicates that Star Bulk Carriers may be undervalued on an earnings multiple basis.
Result: UNDERVALUED
NasdaqGS:SBLK PE Ratio as at Dec 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1452 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Star Bulk Carriers future with the numbers you see on screen. A Narrative is your story for the company, where you spell out how you think revenue, earnings and margins will evolve, and then link that story to a financial forecast and ultimately to a fair value estimate. On Simply Wall St, millions of investors build and compare these Narratives in the Community page, using them as an accessible tool to decide when to buy or sell by checking whether their Fair Value sits above or below the current Price. Narratives update dynamically as fresh news, earnings or guidance come in, so your fair value and conviction can evolve with the facts. For example, one Star Bulk Narrative might lean into fleet modernization, tight vessel supply and capital returns to support a fair value near the top of the current analyst range, while a more cautious Narrative could emphasize aging ships, leverage and trade volatility to anchor valuation closer to the low end.
Do you think there’s more to the story for Star Bulk Carriers? Head over to our Community to see what others are saying!
NasdaqGS:SBLK Community Fair Values as at Dec 2025
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.
Companies discussed in this article include SBLK.
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