Unity Software Valuation

U Stock  USD 23.94  0.49  2.01%   
At this time, the company appears to be undervalued. Unity Software has a current Real Value of $27.76 per share. The regular price of the company is $23.94. Our model measures the value of Unity Software from inspecting the company fundamentals such as Operating Margin of (0.35) %, return on equity of -0.23, and Shares Outstanding of 385.94 M as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Unity Software's valuation include:
Price Book
3.0692
Enterprise Value
10.9 B
Enterprise Value Ebitda
(52.02)
Price Sales
4.4658
Forward PE
62.1118
Undervalued
Today
23.94
Please note that Unity Software's price fluctuation is very steady at this time. Calculation of the real value of Unity Software is based on 3 months time horizon. Increasing Unity Software's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Unity Software is useful when determining the fair value of the Unity stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Unity Software. Since Unity Software is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Unity Stock. However, Unity Software's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  23.94 Real  27.76 Target  43.07 Hype  24.05
The real value of Unity Stock, also known as its intrinsic value, is the underlying worth of Unity Software Company, which is reflected in its stock price. It is based on Unity Software's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Unity Software's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Unity Software's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
27.76
Real Value
30.51
Upside
Estimating the potential upside or downside of Unity Software helps investors to forecast how Unity stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Unity Software more accurately as focusing exclusively on Unity Software's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
-1-0.63-0.24
Details
Hype
Prediction
LowEstimatedHigh
21.3024.0526.80
Details
27 Analysts
Consensus
LowTarget PriceHigh
39.1943.0747.81
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Unity Software's intrinsic value based on its ongoing forecasts of Unity Software's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Unity Software's closest peers. When choosing an evaluation method for Unity Software, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Unity Software Investments

46.24 Million

Unity Valuation Trend

Knowing Unity Software's actual value is paramount for traders to make sound investment determinations. Unity Software's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Unity Software's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Unity Software's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Unity Market Cap

Unity Software is rated fourth in market capitalization category among related companies. Market capitalization of Information Technology industry is at this time estimated at about 302.15 Billion. Unity Software holds roughly 9.43 Billion in market capitalization claiming about 3% of equities under Information Technology industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

Unity Software Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Unity Software's current stock value. Our valuation model uses many indicators to compare Unity Software value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Unity Software competition to find correlations between indicators driving Unity Software's intrinsic value. More Info.
Unity Software is rated fourth in price to book category among related companies. It is rated fifth in price to sales category among related companies fabricating about  1.46  of Price To Sales per Price To Book. At this time, Unity Software's Price To Sales Ratio is comparatively stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Unity Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Unity Software's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Unity Software's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Unity Software's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Unity Software and how it compares across the competition.

About Unity Software Valuation

The stock valuation mechanism determines the current worth of Unity Software on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Unity Software. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Unity Software based exclusively on its fundamental and basic technical indicators. By analyzing Unity Software's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Unity Software's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Unity Software. We calculate exposure to Unity Software's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Unity Software's related companies.
Last ReportedProjected for Next Year
Gross Profit1.5 B840 M
Pretax Profit Margin(0.36)(0.38)
Operating Profit Margin(0.35)(0.37)
Net Loss(0.38)(0.39)
Gross Profit Margin 0.66  0.81 

8 Steps to conduct Unity Software's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Unity Software's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Unity Software's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Unity Software's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Unity Software's revenue streams: Identify Unity Software's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Unity Software's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Unity Software's growth potential: Evaluate Unity Software's management, business model, and growth potential.
  • Determine Unity Software's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Unity Software's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Unity Software Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Unity Software does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding380.5 M
Forward Price Earnings62.1118

Unity Software Current Valuation Indicators

Valuation refers to the process of determining the present value of Unity Software and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Unity we look at many different elements of the entity such as Unity's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Unity Software's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Unity Software's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Unity Software, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Unity Software's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Unity Software's worth.
When determining whether Unity Software is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Unity Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Unity Software Stock. Highlighted below are key reports to facilitate an investment decision about Unity Software Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Unity Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.
For more information on how to buy Unity Stock please use our How to Invest in Unity Software guide.
You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

Complementary Tools for Unity Stock analysis

When running Unity Software's price analysis, check to measure Unity Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Unity Software is operating at the current time. Most of Unity Software's value examination focuses on studying past and present price action to predict the probability of Unity Software's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Unity Software's price. Additionally, you may evaluate how the addition of Unity Software to your portfolios can decrease your overall portfolio volatility.
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Is Unity Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Unity Software. If investors know Unity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Unity Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.16)
Revenue Per Share
5.749
Quarterly Revenue Growth
0.351
Return On Assets
(0.06)
Return On Equity
(0.23)
The market value of Unity Software is measured differently than its book value, which is the value of Unity that is recorded on the company's balance sheet. Investors also form their own opinion of Unity Software's value that differs from its market value or its book value, called intrinsic value, which is Unity Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Unity Software's market value can be influenced by many factors that don't directly affect Unity Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Unity Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Unity Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Unity Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.