NextNav (NN): Valuation Perspective Following Key 5G Timing Integration Breakthrough with Oscilloquartz

NextNav (NN) and Oscilloquartz have reached a meaningful milestone in integrating NextNav’s 5G-based Positioning, Navigation, and Timing solution with an Oscilloquartz grandmaster clock. This integration delivers GPS-quality timing even when GPS signals are unavailable.

See our latest analysis for NextNav.

NextNav’s recent technical achievements and its expansion efforts, including new spectrum acquisitions, have brought fresh attention to the stock. While the share price has slipped 15.4% over the past month, the longer-term momentum tells a more optimistic story. The 1-year total shareholder return stands at 16.2%, and there is a 288% cumulative return over the last three years. This hints at both volatility and clear growth potential as the company carves out its role in 5G-enabled timing solutions.

If this breakthrough in resilient timing technology got you thinking about other innovative plays, it might be time to broaden your search and see what’s possible with fast growing stocks with high insider ownership

With the share price still well below analyst targets despite strong multi-year returns, investors now face a pressing question: is there overlooked value in NextNav, or is the market already pricing in all of its future growth?

Price-to-Book of -37.9x: Is it justified?

NextNav’s price-to-book ratio stands at -37.9x, a stark outlier given its last close price of $13.31. This negative multiple stems from the company’s negative shareholders’ equity, raising red flags about direct valuation comparisons to peers.

The price-to-book ratio measures a company’s market value relative to its book value and is often used to gauge whether shares are trading at a premium or discount to net assets. In NextNav's case, liabilities greatly exceed assets, which inverts the ratio and reduces its relevance for traditional valuation interpretation.

Relative to the U.S. Software industry average price-to-book of 4x, NextNav’s -37.9x is exceptionally low and not a healthy sign. Peer companies with positive equity use this ratio as a marker of market optimism or skepticism. Since NextNav reports negative equity, it does not offer a fair basis for comparison. Without a meaningful fair ratio due to negative equity, investors lack a typical anchor to assess valuation.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of -37.9x (ABOUT RIGHT)

However, ongoing annual revenue declines and negative net income growth rates remain potential risks that could challenge NextNav’s optimistic long-term outlook.

Find out about the key risks to this NextNav narrative.

Build Your Own NextNav Narrative

Investors seeking a different angle or wanting to review the numbers firsthand can craft an independent perspective in just a few minutes, so why not Do it your way

A great starting point for your NextNav research is our analysis highlighting 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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