Viasat (VSAT): Is the Recent Turnaround Reflected in the Company’s Valuation?

Viasat (VSAT) shares have recently caught investor attention after the company posted a sharp rebound in its net income over the past year. This turnaround comes at a time of steady revenue growth and a climb in the stock’s year-to-date performance.

See our latest analysis for Viasat.

After a turbulent spell, Viasat’s 275.8% year-to-date share price return and 298.3% total shareholder return over 12 months suggest strong momentum is building, supported by improved profitability and growing confidence from investors. The recent uptick in share price highlights renewed optimism as the company navigates recent challenges and seeks to capitalize on its turnaround.

If Viasat’s bounceback has you wondering what other companies are accelerating, it could be the perfect time to discover See the full list for free.

With shares racing ahead, the key question for investors is whether Viasat remains undervalued given its sharp turnaround, or if the company’s future growth has already been fully reflected in today’s market price.

Most Popular Narrative: 37% Overvalued

Viasat’s current share price of $35.81 stands notably above the most widely followed narrative fair value estimate of $26.14. This suggests a rich valuation by analyst consensus and invites a closer look at what is driving this assessment.

The focus on operational efficiency, portfolio review, and progressing integration with Inmarsat, in addition to CapEx peaking with the ViaSat-3 program, sets up Viasat for positive free cash flow inflection, deleveraging, and earnings improvement as major investment cycles wind down. Rising government and commercial interest in bridging the digital divide, especially in underserved and remote areas, provides a multi-year tailwind through subsidy programs and public/private contracts, supporting stable, recurring revenue streams and margin visibility.

Read the complete narrative.

What is it about Viasat’s forecasted turnaround that underpins this analyst valuation? The narrative’s math leans on future margin expansion and a sector-disrupting cash flow shift. Uncover the detailed projections behind the headlines. The full story reveals bolder expectations than you might think.

Result: Fair Value of $26.14 (OVERVALUED)

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

However, challenges such as ongoing high capital expenses and declining U.S. broadband subscribers could put pressure on Viasat’s long-term growth and profitability potential.

Find out about the key risks to this Viasat narrative.

Another View: Multiples Suggest Bargain Potential

While analysts see Viasat as richly priced compared to their fair value models, a look at practical metrics like the price-to-sales ratio offers a different perspective. Viasat trades at just 1.1x sales, well below the 3.3x average of its peers and the fair ratio of 2x. This gap suggests there may be untapped upside, but also highlights questions about the risks keeping the stock so inexpensive. Should investors trust the market’s skepticism or the potential for a strong catch-up?

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

Build Your Own Viasat Narrative

If you have your own perspective or want to dig deeper into the numbers, it takes just a few minutes to build your personal investment view. Do it your way

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