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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ubiquiti Inc. To summarize, we found that Ubiquiti Inc ranked in the 35th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 51.5%. The most interesting components of our discounted cash flow analysis for Ubiquiti Inc ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 20.08; that's higher than 79.66% of US stocks in the Technology sector that have positive free cash flow.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately only 15% 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 3%; for context, that number is higher than 45.01% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as UI, try ACIW, MEI, TEAM, ADI, and ALRM.
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