DHT Holdings may be trading 49% below its fair value of $36 per share, according to a widely followed narrative on the stock, following the company's strongest ever quarter. The fair value estimate rests on assumptions of sustained elevated VLCC rates, with tensions and disruption in the Strait of Hormuz persisting and average time charter equivalent earnings of $90,000 per day. Under this scenario, annualized earnings per share could reach $2.44, driven by a projected $0.61 EPS in the second quarter of 2026. The narrative notes that any rapid easing of geopolitical tensions or route normalization could quickly undermine those earnings assumptions.
