Unity Software Inc.

DB:US3 Stock Report

Market Cap: €8.7b

Unity Software Valuation

Is US3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of US3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: US3 (€21.46) is trading below our estimate of fair value (€26.11)

Significantly Below Fair Value: US3 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for US3?

Key metric: As US3 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for US3. This is calculated by dividing US3's market cap by their current revenue.
What is US3's PS Ratio?
PS Ratio4.6x
SalesUS$1.97b
Market CapUS$9.07b

Price to Sales Ratio vs Peers

How does US3's PS Ratio compare to its peers?

The above table shows the PS ratio for US3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average14.8x
NEM Nemetschek
11.7x14.1%€10.8b
NB2 Northern Data
34.8x31.5%€2.7b
AOF ATOSS Software
10.4x12.7%€1.7b
TMV TeamViewer
2.1x7.5%€1.4b
US3 Unity Software
4.6x1.3%€9.1b

Price-To-Sales vs Peers: US3 is good value based on its Price-To-Sales Ratio (4.6x) compared to the peer average (14.8x).

Price to Sales Ratio vs Industry

How does US3's PS Ratio compare vs other companies in the DE Software Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x5.2%US$64.17m
CLIQ Cliq Digital
0.1x13.2%US$32.55m
LSX LS telcom
0.4x5.0%US$16.92m
8DQ GetSwift Technologies
0.07xn/aUS$2.53m
US3 4.6xIndustry Avg. 2.1xNo. of Companies6PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: US3 is expensive based on its Price-To-Sales Ratio (4.6x) compared to the German Software industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is US3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

US3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.6x
Fair PS Ratio5x

Price-To-Sales vs Fair Ratio: US3 is good value based on its Price-To-Sales Ratio (4.6x) compared to the estimated Fair Price-To-Sales Ratio (5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst US3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€21.46
€21.38
-0.3%
16.9%€28.66€14.33n/a23
Dec ’25€22.33
€21.36
-4.3%
16.9%€28.64€14.32n/a23
Nov ’25€18.82
€19.03
+1.1%
26.6%€34.21€9.25n/a21
Oct ’25€19.47
€18.28
-6.1%
28.2%€33.23€8.98n/a20
Sep ’25€14.65
€16.86
+15.1%
30.6%€33.06€8.94n/a20
Aug ’25€14.04
€22.94
+63.4%
30.1%€41.63€12.95n/a20
Jul ’25€14.61
€25.55
+74.8%
28.2%€42.05€13.08n/a22
Jun ’25€16.69
€25.74
+54.2%
26.8%€41.48€12.91n/a21
May ’25€22.75
€28.07
+23.4%
24.2%€41.20€14.65n/a22
Apr ’25€24.27
€28.07
+15.7%
24.2%€41.20€14.65n/a22
Mar ’25€26.54
€28.98
+9.2%
23.9%€41.53€14.76n/a22
Feb ’25€29.27
€32.08
+9.6%
29.6%€50.90€14.81n/a22
Jan ’25€38.30
€28.81
-24.8%
27.0%€42.14€14.66n/a21
Dec ’24€29.69
€28.21
-5.0%
29.0%€42.42€14.76€22.3321
Nov ’24€23.20
€39.97
+72.3%
26.3%€52.88€15.11€18.8222
Oct ’24€29.78
€41.50
+39.3%
25.1%€52.97€15.13€19.4721
Sep ’24€34.31
€41.41
+20.7%
26.4%€56.47€11.11€14.6521
Aug ’24€41.45
€37.14
-10.4%
31.4%€59.87€10.89€14.0420
Jul ’24€39.68
€35.25
-11.1%
32.2%€60.21€10.95€14.6120
Jun ’24€27.78
€33.42
+20.3%
32.2%€61.09€11.11€16.6919
May ’24€23.98
€32.91
+37.2%
32.9%€61.30€10.98€22.7519
Apr ’24€29.46
€34.20
+16.1%
33.3%€63.21€11.32€24.2718
Mar ’24€27.76
€35.05
+26.3%
31.2%€63.51€15.17€26.5418
Feb ’24€33.07
€34.12
+3.2%
38.6%€65.25€14.70€29.2720
Jan ’24€26.96
€34.89
+29.4%
39.9%€67.27€15.16€38.3020
Dec ’23€37.97
€35.97
-5.3%
38.8%€68.71€15.48€29.6921

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 06:00
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Unity Software Inc. is covered by 47 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David MakArete Research Services LLP
Ishan MajumdarBaptista Research
Ross SandlerBarclays