Software - Application · NYSE
Current Price
$26.11
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Unity Software Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for UUnity Software Inc. creates and operates an interactive real-time 3D content platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company serves content creators and developers, artists, designers, engineers, and architects to create interactive and real-time 2D and 3D content. It offers its solutions directly through its online store, field sales operations, independent distributors, and resellers in the United States, Denmark, Belgium, Canada, China, Colombia, Finland, France, Germany, Ireland, Israel, Japan, Lithuania, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, and the United Kingdom. The company was founded in 2004 and is headquartered in San Francisco, California.
ROIC (TTM)
-8.0%
ROE (TTM)
-12.6%
FCF Yield
3.55%
Based on trailing twelve-month data, U shows a free cash flow per share of N/A and a ROIC of -8.0%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.55% are important context metrics when evaluating U's stock valuation relative to peers.
The intrinsic value of U depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether U is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $26.11. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Unity Software Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Software - Application industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting U's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Unity Software Inc., this means projecting how much free cash flow the Software - Application will produce over the next 5-10 years, then discounting those amounts to today's dollars. U's ROIC of -8.0% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For U, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
