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Ubiquiti Inc – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Ubiquiti Inc. is focused on democratizing network technology on a global scale - aggregate shipments over 101 million devices play a key role in creating networking infrastructure in over 200 countries and territories around the world. Ubiquiti's professional networking products are powered by its UNMS and UniFi software platforms to provide high-capacity distributed Internet access and unified information technology management, respectively.
Analysis Results
Intrinsic Value $137.94
Latest Price $293.56
Relative Value 113% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 11.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 485 443
2024 541 452
2025 603 460
2026 672 469
2027 749 478
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10300 million. This corresponds to a present value of 6030 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2300 million. Adding in the terminal value gives a total present value of 8340 million.

There are presently 60.4 million outstanding shares, so the intrinsic value per share is 137.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 621,573,000
Current Cash 136,651,000
Current Liabilities 310,950,000
Current Debt 23,865,000
Non-Cash Working Capital (NCWC) 197,837,000
Change in NCWC 6,966,000
EBIT 462,264,000
Tax Provision 65,792,000
Depreciation and Amortization 13,689,000
Capital Expenditure -13,468,000
Unlevered Free Cash Flow 401,021,836
Current Assets 694,156,000
Current Cash 250,738,000
Current Liabilities 276,412,000
Current Debt 23,865,000
Non-Cash Working Capital (NCWC) 190,871,000
Change in NCWC -12,004,000
EBIT 742,592,000
Tax Provision 111,070,000
Depreciation and Amortization 12,100,000
Capital Expenditure -18,325,000
Unlevered Free Cash Flow 611,012,845
Current Assets 586,647,000
Current Cash 143,542,000
Current Liabilities 264,297,000
Current Debt 24,067,000
Non-Cash Working Capital (NCWC) 202,875,000
Change in NCWC -94,412,000
EBIT 478,198,000
Tax Provision 69,899,000
Depreciation and Amortization 7,695,000
Capital Expenditure -30,619,000
Unlevered Free Cash Flow 286,615,311
Current Assets 753,811,000
Current Cash 308,013,000
Current Liabilities 179,186,000
Current Debt 30,675,000
Non-Cash Working Capital (NCWC) 297,287,000
Change in NCWC 51,107,000
EBIT 412,297,000
Tax Provision 58,795,000
Depreciation and Amortization 7,556,000
Capital Expenditure -9,684,000
Unlevered Free Cash Flow 397,732,877
Current Assets 1,001,352,000
Current Cash 666,681,000
Current Liabilities 112,916,000
Current Debt 24,425,000
Non-Cash Working Capital (NCWC) 246,180,000
Change in NCWC -18,211,000
EBIT 326,127,000
Tax Provision 117,852,000
Depreciation and Amortization 7,310,000
Capital Expenditure -9,115,000
Unlevered Free Cash Flow 183,762,765
Current Assets 952,334,000
Current Cash 604,198,000
Current Liabilities 98,488,000
Current Debt 14,743,000
Non-Cash Working Capital (NCWC) 264,391,000
Change in NCWC 166,451,000
EBIT 289,761,000
Tax Provision 27,518,000
Depreciation and Amortization 7,359,000
Capital Expenditure -7,232,000
Unlevered Free Cash Flow 428,363,660
Current Assets 728,641,000
Current Cash 551,031,000
Current Liabilities 90,920,000
Current Debt 11,250,000
Non-Cash Working Capital (NCWC) 97,940,000
Change in NCWC 23,129,000
EBIT 233,761,000
Tax Provision 26,324,000
Depreciation and Amortization 6,294,000
Capital Expenditure -6,248,000
Unlevered Free Cash Flow 231,289,902
Current Assets 581,346,000
Current Cash 446,401,000
Current Liabilities 70,134,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 74,811,000
Change in NCWC 8,499,000
EBIT 186,015,000
Tax Provision 16,085,000
Depreciation and Amortization 4,971,000
Capital Expenditure -12,724,000
Unlevered Free Cash Flow 166,232,064
Current Assets 465,724,000
Current Cash 347,097,000
Current Liabilities 52,315,000
Current Debt 0
Non-Cash Working Capital (NCWC) 66,312,000
Change in NCWC 65,072,000
EBIT 195,945,000
Tax Provision 17,674,000
Depreciation and Amortization 2,819,000
Capital Expenditure -4,045,000
Unlevered Free Cash Flow 241,995,850
Current Assets 283,474,000
Current Cash 227,826,000
Current Liabilities 59,421,000
Current Debt 5,013,000
Non-Cash Working Capital (NCWC) 1,240,000
Change in NCWC -39,130,000
EBIT 92,604,000
Tax Provision 11,263,000
Depreciation and Amortization 1,963,000
Capital Expenditure -5,363,000
Unlevered Free Cash Flow 38,706,536

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