Ubiquiti’s DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.1063%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4%

Last 24 Months Beta: 1.07

Historical Data

Revenue growth in the last 10 years (CAGR): 13.94%

Earnings growth in the last 10 years (CAGR): 17.39%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 19.49%

Future Assumptions

End of Year FCF growth: 10%

Growth until end of 2026: 18%

Growth until end of 2034: 10%

Perpetual growth: 3.1%

Net Debt: 0.232B

Restricted Stock Units Present Value Assumption: $0.037B

Stock Valuation based on these assumptions: $472

Last update 06/22/2025

Data Source for the analysis: SEEKING ALPHA

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All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Palantir (UI) and I don’t plan to add a position in the coming days.