A Look at Viasat’s (VSAT) Valuation Following Major Global 5G and Maritime Connectivity Partnerships

If you have been watching Viasat (VSAT) lately and wondering why interest in the stock has surged, you are not alone. Two major strategic moves were announced just in the past week: a joint venture with Space42 to launch global Direct-to-Device 5G satellite services, and a sizable NexusWave deployment in partnership with Pulsar International, set to connect over 300 vessels in the coming year. These alliances aim to address two fast-growing markets: next-generation mobile connectivity and high-reliability maritime internet, both critical for digital transformation beyond terrestrial networks.

This wave of partnership announcements follows a dramatic run for Viasat shares. The stock recently reached a new all-time high, although it ended the day lower as some investors locked in early gains. Over the past month, momentum has accelerated, with shares up 6%. A notable 131% gain in the past three months highlights how quickly market sentiment can shift for technology enablers tapping into global 5G and connectivity trends. Recent conference appearances and continued commercial pipeline activity indicate sustained investor interest, but longer-term returns are just now turning positive following years of mixed performance.

With this backdrop of ambitious growth moves, the question comes to the forefront: is Viasat undervalued following these developments, or is the market already betting on future growth?

Most Popular Narrative: 21.9% Overvalued

The current consensus narrative considers Viasat shares overvalued by a significant margin, suggesting analysts think the market premium has run ahead of fundamentals.

Viasat is poised to benefit from growing global demand for secure connectivity and resilient communications. This demand is driven by heightened geopolitical instability and increased threats to network and data center security, which is fueling double-digit growth in its Defense and Advanced Technologies segment and is expected to support sustained revenue expansion.

Curious about what is fueling that overvaluation? The full story hinges on bold assumptions for rising earnings, major shifts in margins, and a surprisingly aggressive profit trajectory. Want to see which future financial leaps are behind today’s price? Dig into the details in the complete narrative.

Result: Fair Value of $24.29 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent subscriber declines and heavy capital spending could threaten Viasat's cash flow outlook. This may challenge the bullish case for future growth.

Find out about the key risks to this Viasat narrative.

Another View: Discounted Cash Flow Perspective

While analysts use future earnings estimates to set their price target, our DCF model paints a strikingly different picture. According to this view, Viasat’s shares look deeply undervalued. Which approach better captures reality: expectations or fundamentals?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding Viasat to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Viasat Narrative

If you would rather dig into the details yourself or have a different viewpoint, you can easily assemble your own Viasat narrative in just a few minutes. Do it your way.

A great starting point for your Viasat research is our analysis highlighting 2 key rewards and 3 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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