Gogo Inc. (GOGO)
Valuation Overview•Is Gogo Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 41/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
GOGO demonstrates adequate business quality with stable profitability. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is driving exceptional top-line expansion (31.1% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 12.4%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $226.3M | +104.7% | +31.1% | +27.5% | +6.2% | |
| EBITDA | $48.6M | — | +4.0% | — | — | |
| Net Income | $13.1M | -6.0% | -48.0% | — | — | |
| EPS (Diluted) | $0.10 | -5.4% | -48.9% | — | — | |
| Free Cash Flow | -$33.0M | +122.0% | +6.8% | -21.3% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 52.9% | 62.7% | 64.8% | 61.2% |
| Operating Margin | 12.4% | 18.4% | 25.3% | 16.9% |
| Net Margin | 1.5% | 13.7% | 21.9% | -9.4% |
| FCF Margin | -0.2% | -15.2% | -4.0% | -5.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.09 | $0.07 | -22.2% | ||
| Q1'26 | $0.02 | $-0.01 | -150.0% | ||
| Q4'25 | $0.11 | $0.10 | -9.1% | ||
| Q3'25 | $0.12 | $0.13 | +8.3% | ||
| Q2'25 | $0.05 | $0.18 | +260.0% | ||
| Q1'25 | $0.04 | $0.07 | +75.0% | ||
| Q4'24 | $0.05 | $0.12 | +140.0% | ||
| Q3'24 | $0.07 | $0.10 | +42.9% |
Total return is -76.3% (1Y), lagging the benchmark by -101.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | -28.4% | -37.7% | — |
| 1Y | -76.3% | -101.3% | — |
| 3YCAGR | -41.3% | -60.3% | — |
| 5YCAGR | -20.9% | -33.3% | — |
| 10YCAGR | -8.6% | -21.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Gogo Inc. (GOGO) valuation, health, and returns.
Based on peer relative multiples, Gogo Inc. appears Cheap versus peers compared to industry peers.
Gogo Inc. has multiple valuation anchors: Peer Relative Fair Value: $12.68 | Wall Street Analyst Target: $9.50 (implying +178.6% upside). A convergence of these signals offers higher conviction.
Gogo Inc. displays fair financial health with a composite quality score of 41/100, supported by a Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 9.1%.
Gogo Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Gogo Inc.'s current growth trajectory is Accelerating. The company achieved +104.7% 1Y revenue growth and -5.4% 1Y EPS growth, compared to its 3Y revenue CAGR of +31.1%.
Wall Street consensus is Hold based on 13 analysts, beating EPS expectations in 75% of recent quarters with a -3-quarter streak. The consensus price target represents a +178.6% change from current levels.
Investment risks for Gogo Inc. include: -79.6% 1-year max drawdown, high beta (1.52x market volatility). Volatility risk is characterized by a beta of 1.52x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.