Is Ubiquiti Inc. (UI) Fairly Valued?
Ubiquiti Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of September 18, 2026.
By TGMCharts Research · Data as of · Updated
Ubiquiti Inc.'s current market price presents a valuation profile that requires careful examination of its underlying growth metrics. The equity is priced at 37.19x trailing earnings, while the third-party analyst DCF (FMP) reference stands at $322, indicating that the market price is above the estimated fair value.
Evaluating this valuation requires balancing the premium multiple against the company's historical performance. The five-year revenue CAGR of 11.52% and five-year EPS CAGR of 10.14% are paired with a net margin of 29.33%, which serves as the primary fundamental support for the current pricing structure.
- Ubiquiti Inc. closed at $589 on September 18, 2026.
- Trailing P/E is 37.19x and price-to-sales is 10.90x.
- Analyst DCF (FMP) is $322 with margin of safety at -38.23%.
- Five-year revenue CAGR is 11.52% and five-year EPS CAGR is 10.14%.
- Earnings yield is 2.69% and net margin is 29.33%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating the Fundamental Premium and the Burden of Proof
Analyzing Ubiquiti Inc. requires evaluating whether the current market valuation is supported by the company's financial trajectory. With the equity closing at $589 on September 18, 2026, the market has assigned a trailing earnings multiple of 37.19x. This premium multiple stands in contrast to the independent analyst-DCF (FMP) reference, which indicates a negative margin of safety of -38.23%.
A comprehensive valuation assessment must look beyond a single ratio to examine the interaction between multiple metrics. This analysis evaluates the trailing P/E, price-to-sales, earnings yield, and long-term growth rates as an integrated system. When these indicators align, the valuation has a firmer foundation; when they diverge, a more cautious analytical posture is warranted.
Current compounder snapshot · UI
Live supporting context; not part of the article's frozen 2026-09-18 evidence snapshot.
- Score
- 40/100
- 10Y CAGR
- 17.3%
- Median YoY
- 18.2%
- YoY volatility
- σ 17.8pp· uneven
- Quarters ≥ 20%
- 17 of 40
- Negative quarters
- 6
- Valuation vs own 10Y history
- P/S 9.6x · 10Y median 8.8x · 65th percentile · as of Sep 9, 2026
How this score is computed
- Quarters at or above 20%: 17 of 40 → 17 of 40 pts
- Steadiness (typical swing 17.8pp) → 12.3 of 25 pts
- Pace (median 18.2% YoY) → 4.3 of 20 pts
- Latest quarter (23.5% YoY) → 6.4 of 15 pts
- Score: 40 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Current Market Multiples and Owner Yield Dynamics
To understand the valuation context, we first observe the absolute multiples the market demands. The company's price-to-sales ratio has reached 10.90x, while the corresponding earnings yield is 2.69%. These metrics, when viewed alongside historical trailing P/E ranges, help determine if the current pricing reflects normal cyclical variations or an elevated expectation of future cash generation.
UI P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings. Historical series through 2026-09-09.
Latest P/E ratio: 37.19x as of September 18, 2026.
A P/E ratio of 37.19x has to be judged against the company's five-year EPS CAGR of 10.14%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
UI price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle. Historical values estimate market capitalization from statement-period weighted shares. Comparisons with the current quote-based value are approximate. Only filing versions delivered by FMP are available for the historical calculation. Historical series through 2026-09-09.
Data through 2026-09-18. Historical values estimate market capitalization from statement-period weighted shares. Comparisons with the current quote-based value are approximate. Only filing versions delivered by FMP are available for the historical calculation.
Price-to-sales at 10.90x is most useful beside net margin of 29.33%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Disparity Between Market Price and Independent DCF Estimates
Comparing the current price to structured valuation models provides an external benchmark for market expectations. The third-party analyst DCF (FMP) model calculates a reference value of $322, placing the current market price above this estimated fair value by -38.23%. This gap serves as an analytical reference point rather than an absolute judgment; alternative scenario models may yield different results.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
UI earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective. Historical series through 2026-09-09.
Latest earnings yield: 2.69%.
The earnings yield of 2.69% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Historical Growth Rates and Top-Line Trajectory
For a premium multiple to remain sustainable, it must be accompanied by consistent operational expansion. Over the past five years, the company has achieved a revenue CAGR of 11.52% alongside an EPS CAGR of 10.14%. These figures indicate whether the valuation is supported by expanding business volume or if it relies primarily on multiple expansion.
UI revenue
Revenue history tests whether the valuation is being supported by real business expansion. Q4 FY2026 (2026-06-30): $937.32M.
Five-year revenue CAGR: 11.52%. This is endpoint-to-endpoint across the five-year window — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 11.52% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
UI EPS
EPS history checks whether reported earnings are keeping pace with the market multiple. Q4 FY2026 (2026-06-30): $4.70.
Five-year EPS CAGR: 10.14%. This is endpoint-to-endpoint across the five-year window — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 10.14% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Profitability Efficiency and Sales Multiples
Operating efficiency determines how effectively top-line expansion translates into shareholder value. The company maintains a net margin of 29.33%, which must be evaluated alongside the price-to-sales ratio of 10.90x. High profit margins can make elevated sales multiples more acceptable, but they also expose the valuation to risk if operational costs rise or efficiency declines.
UI net margin
Net margin shows whether the company has enough profitability quality to support its valuation. Q4 FY2026 (2026-06-30): 30.40%.
Net margin (TTM): 29.33%. The bars below are reported fiscal periods (quarterly where available).
Net margin of 29.33% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Contrasting the Valuation Support Against Multiple Risks
The optimistic view of the valuation relies on the continuation of the company's five-year revenue CAGR of 11.52% and its strong net margin of 29.33% to justify the current pricing. Conversely, the cautious view highlights that a trailing P/E of 37.19x leaves little room for error if growth slows or if margins compress from their current levels.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 11.52% and five-year EPS CAGR of 10.14% support the business case.
- Net margin of 29.33% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 37.19x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -38.23% should change the valuation read if it deteriorates after refresh.
Key Indicators That Would Alter the Analytical Stance
The current analytical perspective would need revision if there is a significant shift in the underlying financial data. Key factors to monitor include changes in the third-party DCF reference of $322, a contraction in the historical growth trends, or a downward trend in net margins. This analysis is based on data available as of the snapshot date.
Synthesizing the Long-Term Fundamental Outlook
In conclusion, the valuation of Ubiquiti Inc. depends on several interconnected variables. The sustainability of the current market price relies on the company maintaining its historical growth trajectory and high margin levels. This analysis is based on historical financial filings and is intended for general research purposes, not as personalized financial advice.
FAQ
Is UI fairly valued?
Ubiquiti Inc. trades at 37.19x trailing earnings, while the price gap versus the third-party DCF (FMP) estimate is -38.23%. Read those references alongside five-year revenue CAGR of 11.52% and five-year EPS CAGR of 10.14%; none is a standalone verdict.
What valuation metric matters most for UI?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this UI valuation view refresh?
Numbers here are as of September 18, 2026 — the note's dated snapshot. A note whose figures can no longer be verified against the company's reported data is corrected or unpublished rather than left stale.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $322.
- A break in five-year EPS support, currently 10.14%.
- Margin quality drifting away from the latest net margin of 29.33%.
The bottom line
Ubiquiti Inc. valuation research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Ubiquiti Inc. (UI) Earnings ReviewEarnings review on Ubiquiti Inc. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-K · filed 2026-08-21 · period 2026-06-30 · SEC EDGAR source
- “Gross Profit Margin - Gross Profit as a percentage of Revenue Gross profit margin increased to 46% in fiscal 2026 from 43% in fiscal 2025.”
- “As a percentage of revenues, R&D expenses decreased from 7% in fiscal 2025 to 6% in fiscal 2026.”
- “These actions have increased the cost of importing products containing certain raw materials and have affected our operating results and margins.”
- “The magnitude and scope of the recent changes have increased our product costs.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.