Ubiquiti Inc. provides various networking products and solutions for service providers and enterprises in the United States and internationally. The Company\'s technology platforms for service providers enable carrier-class network infrastructure for fixed wireless broadband, wireless backhaul systems and routing. The company was founded in 2003 and is based in San Jose, California.
UI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ubiquiti Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ubiquiti Inc ranked in the 45th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Ubiquiti Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 17.09 -- which is good for besting 79.81% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 15.35% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
UI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 46.72% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LFUS, RMBS, TEAM, CRUS, and JBL can be thought of as valuation peers to UI, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out […]
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]