Under Armour Valuation

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

UA ($8.91) is trading above our estimate of [[fair value]] ($5.09)

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

Valuation Score

2/6

Valuation Score 2/6

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 UA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UA ($8.91) is trading above our estimate of fair value ($5.09)

Significantly Below Fair Value: UA is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for UA. This is calculated by dividing UA's market cap by their current revenue.
What is UA's PS Ratio?
PS Ratio	0.8x
Sales	US$5.40b
Market Cap	US$3.95b

UA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	13.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for UA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.2x
KTB Kontoor Brands	2x	2.9%	US$5.0b
COLM Columbia Sportswear	1.5x	4.6%	US$4.8b
PVH PVH	0.7x	1.7%	US$5.8b
HBI Hanesbrands	0.5x	-7.7%	US$3.0b
UA Under Armour	0.8x	1.9%	US$3.9b

Price-To-Sales vs Peers: UA is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

How does UA's PS Ratio compare vs other companies in the US Luxury Industry?

8 Companies	Price / Sales	Estimated Growth	Market Cap
UFI Unifi	0.2x	8.5%	US$101.38m
FOSL Fossil Group	0.06x	n/a	US$62.24m
VNCE Vince Holding	0.07x	3.1%	US$21.43m
FORD Forward Industries	0.1x	n/a	US$4.26m

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: UA is expensive based on its Price-To-Sales Ratio (0.8x) compared to the US Luxury industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is UA'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.

UA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	1.1x

Price-To-Sales vs Fair Ratio: UA is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.