Ubiquiti Inc. (UI)
Valuation Overview•Is Ubiquiti Inc. Overvalued or Undervalued?
Trading at a discount compared to peers, but the underlying intrinsic cash flows struggle to support the current price.
High-quality fundamentals with a strong composite quality score of 89/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Elite compounder with fortress-level fundamentals across every core pillar.
Wall Street is broadly bullish, projecting solid upside. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
UI exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 81.4% ROIC). This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is driving exceptional top-line expansion (15.0% 3Y CAGR) paired with highly explosive earnings growth (24.3% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 35.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $788.2M | +33.4% | +15.0% | +14.9% | +15.8% | |
| EBITDA | $290.8M | — | +21.7% | — | — | |
| Net Income | $233.9M | +103.4% | +23.4% | — | +18.6% | |
| EPS (Diluted) | $3.86 | +103.1% | +24.3% | +15.2% | +23.3% | |
| Free Cash Flow | $162.2M | +18.5% | +20.7% | +7.9% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 46.0% | 40.3% | 41.7% | 44.0% |
| Operating Margin | 35.8% | 28.8% | 30.6% | 32.6% |
| Net Margin | 30.4% | 22.3% | 24.3% | 26.0% |
| FCF Margin | 24.2% | 14.4% | 19.1% | 22.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $4.29 | $3.88 | -9.6% | ||
| Q1'26 | $3.08 | $3.88 | +26.0% | ||
| Q4'25 | $2.93 | $3.46 | +18.1% | ||
| Q3'25 | $2.23 | $3.54 | +58.7% | ||
| Q2'25 | $1.97 | $3.00 | +52.3% | ||
| Q1'25 | $2.14 | $2.28 | +6.5% | ||
| Q4'24 | $1.63 | $2.14 | +31.3% | ||
| Q3'24 | $1.73 | $1.74 | +0.6% |
Total return is +57.3% (1Y), outperforming the benchmark by +32.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +4.4% | -4.9% | — |
| 1Y | +57.3% | +32.3% | +0.8% |
| 3YCAGR | +49.0% | +27.3% | +4.4% |
| 5YCAGR | +15.2% | +1.0% | +4.3% |
| 10YCAGR | +31.2% | +17.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Ubiquiti Inc. (UI) valuation, health, and returns.
Ubiquiti Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. overvalued (implying -65.8% downside from DCF intrinsic value of $201.44)
Ubiquiti Inc. has multiple valuation anchors: DCF Intrinsic Value: $201.44 | Peer Relative Fair Value: $1390.82 | Wall Street Analyst Target: $672.00 (implying +14.0% upside). A convergence of these signals offers higher conviction.
Ubiquiti Inc. displays excellent financial health with a composite quality score of 89/100, supported by a Altman Z-Score of 31.7 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 81.4%.
Ubiquiti Inc. pays a 0.4% dividend yield, covered by a 20% payout ratio with 1 years of growth, supplemented by a 0.0% buyback yield.
Ubiquiti Inc.'s current growth trajectory is Accelerating. The company achieved +33.4% 1Y revenue growth and +103.1% 1Y EPS growth, compared to its 3Y revenue CAGR of +15.0%.
Wall Street consensus is Hold based on 21 analysts, beating EPS expectations in 58% of recent quarters with a -1-quarter streak. The consensus price target represents a +14.0% change from current levels.
Investment risks for Ubiquiti Inc. include: -48.6% 1-year max drawdown, high beta (2.06x market volatility). Volatility risk is characterized by a beta of 2.06x.
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.