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Ubiquiti Inc. (UI)

Company Dividend Discount ModelIndustry: Communication EquipmentSector: Technology

Valuation Snapshot

Stable Growth$306.78 - $813.81$469.10
Multi-Stage$208.90 - $228.30$218.43
Blended Fair Value$343.77
Current Price$411.65
Upside-16.49%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS13.03%25.46%2.402.402.402.451.671.301.180.000.000.00
YoY Growth--0.04%0.03%-2.03%46.86%28.13%10.26%0.00%0.00%0.00%-100.00%
Dividend Yield--0.58%1.08%1.65%0.83%0.56%0.78%1.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)791.81
(-) Cash Dividends Paid (M)157.27
(=) Cash Retained (M)634.54
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)158.3698.9859.39
Cash Retained (M)634.54634.54634.54
(-) Cash Required (M)-158.36-98.98-59.39
(=) Excess Retained (M)476.18535.57575.16
(/) Shares Outstanding (M)60.5460.5460.54
(=) Excess Retained per Share7.878.859.50
LTM Dividend per Share2.602.602.60
(+) Excess Retained per Share7.878.859.50
(=) Adjusted Dividend10.4611.4412.10
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$306.78$469.10$813.81
Upside / Downside-25.47%13.96%97.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)791.81843.28898.09956.471,018.641,084.851,117.40
Payout Ratio19.86%33.89%47.92%61.94%75.97%90.00%92.50%
Projected Dividends (M)157.27285.78430.34592.48773.88976.361,033.59

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)259.49261.95264.41
Year 2 PV (M)354.80361.56368.38
Year 3 PV (M)443.54456.27469.25
Year 4 PV (M)526.04546.27567.08
Year 5 PV (M)602.62631.73661.95
PV of Terminal Value (M)10,461.4410,966.7311,491.36
Equity Value (M)12,647.9313,224.5113,822.42
Shares Outstanding (M)60.5460.5460.54
Fair Value$208.90$218.43$228.30
Upside / Downside-49.25%-46.94%-44.54%

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