Unity Software Inc. (U) DCF Valuation
A discounted-cash-flow model values Unity Software Inc. (U) at about $6.39 (TGM base case). Today's price of $28.44 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $28.44, the market is pricing in roughly +24.6%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 3-year FCF CAGR of +187.7%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$28.44
Fair-Value Range
$6.39
Market-Implied Growth
+24.6%/yr
vs +187.7% 5Y actual
U DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $184.8M · 0.44B shares · net debt $240.5M
Estimated Fair Value
$6.39
-77.5% vs $28.44
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $28.44; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $8.08 | $8.52 | $9.04 | $9.67 | $10.43 |
| 9.0% | $6.86 | $7.16 | $7.51 | $7.92 | $8.40 |
| 10.0% | $5.93 | $6.15 | $6.39 | $6.67 | $6.99 |
| 11.0% | $5.20 | $5.36 | $5.54 | $5.73 | $5.96 |
| 12.0% | $4.62 | $4.73 | $4.86 | $5.01 | $5.17 |
About Unity Software Inc.
Unity Software Inc. provides a foundational platform for developing and operating interactive, real-time 3D content. This comprehensive platform offers robust software solutions that empower users to create, deploy, and monetize dynamic 2D and 3D content across a wide array of devices, including mobile phones, tablets, personal computers, gaming consoles, and augmented and virtual reality hardware. The company serves a diverse professional base, assisting content creators, software developers, artists, designers, engineers, and architects in bringing their interactive 2D and 3D visions to life. Unity's offerings are distributed globally through various channels, including its direct online store, dedicated field sales teams, and a network of independent distributors and resellers. This extensive international presence spans numerous countries such as the United States, Canada, China, Japan, Germany, France, the United Kingdom, and many others across Europe, Asia, and South America. Founded in 2004, Unity Software maintains its corporate headquarters in San Francisco, California.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Matthew Samuel Bromberg