KVH Industries Valuation

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

KVHI ($4.99) is trading below our estimate of [[fair value]] ($27.39)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: KVHI ($4.99) is trading below our estimate of fair value ($27.39)

Significantly Below Fair Value: KVHI is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for KVHI. This is calculated by dividing KVHI's market cap by their current revenue.
What is KVHI's PS Ratio?
PS Ratio	0.8x
Sales	US$118.37m
Market Cap	US$95.61m

KVHI 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	0.4x
Enterprise Value/EBITDA	-9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for KVHI 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	2.3x
CMTL Comtech Telecommunications	0.1x	4.3%	US$73.0m
SILC Silicom	1.4x	7.6%	US$87.7m
SATX Satixfy Communications	6.3x	n/a	US$75.5m
PCTI PCTEL	1.5x	7.0%	US$132.9m
KVHI KVH Industries	0.8x	-5.1%	US$95.6m

Price-To-Sales vs Peers: KVHI is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does KVHI's PS Ratio compare vs other companies in the US Communications Industry?

13 Companies	Price / Sales	Estimated Growth	Market Cap
VSAT Viasat	0.2x	1.8%	US$1.01b
COMM CommScope Holding Company	0.2x	-0.08%	US$964.98m
TESS TESSCO Technologies	0.2x	n/a	US$83.30m
CMTL Comtech Telecommunications	0.1x	4.3%	US$73.03m

13 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: KVHI is good value based on its Price-To-Sales Ratio (0.8x) compared to the US Communications industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is KVHI'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.

KVHI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	0.3x

Price-To-Sales vs Fair Ratio: KVHI is expensive based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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.

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