Evaluating Globalstar (GSAT): How Major Satellite Expansion Plans Are Shaping the Company’s Valuation

If you’ve been watching Globalstar (GSAT), you might have noticed a surge in investor curiosity after the company announced progress on its upcoming HIBLEO-XL-1 satellite system filing and detailed its plans for the third-generation C-3 satellite network. With billions already invested and another $1.5 billion earmarked for the C-3 system, which will include 48 new satellites and around 90 ground antennas worldwide, Globalstar appears to be doubling down on mobile satellite connectivity. For anyone weighing their next move with the stock, this mix of technological ambition and capital commitment could mean significant changes are on the horizon.

These recent developments come after a year where Globalstar’s performance has started to pick up momentum. While the stock only edged up since January, it has gained 83% over the past year and has climbed 35% over the past 3 months. Other factors, like expansions at its ground station in Greece and leadership appearances at major industry events, add to the sense that Globalstar is scaling aggressively and broadening its reach in satellite services.

It remains to be seen whether Globalstar is setting up for another leg higher or if investors have already factored tomorrow’s growth into today’s share price.

Most Popular Narrative: 38.9% Undervalued

According to the most widely followed narrative, Globalstar shares are viewed as significantly undervalued versus estimated fair value, based on a discount rate of 6.78%. This view is shaped by a set of assumptions around future revenue growth, profit margin expansion, and analyst expectations for earnings several years ahead.

*Continued expansion of government and defense partnerships, including new agreements with U.S. federal agencies and the Parsons relationship, is expected to drive higher recurring revenue as demand for resilient, mission-critical satellite connectivity grows in response to infrastructure vulnerabilities and natural disasters. This would support both top-line growth and improved visibility.*

Want to know the math behind this bold forecast? One core assumption in this narrative is a major transformation in how much Globalstar earns and how efficiently it operates. Just what projections are pushing the target price so high? Dive deeper to see what surprising growth, margin, and earnings numbers could turn today’s valuation on its head.

Result: Fair Value of $52.5 (UNDERVALUED)

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

However, substantial hurdles remain, such as unpredictable sales cycles and relentless competition from terrestrial networks. Either of these factors could limit growth and pressure margins.

Find out about the key risks to this Globalstar narrative.

Another View: Are Shares Overvalued by Market Standards?

A different angle looks at how Globalstar is valued compared to the industry. By this measure, shares actually seem pricey relative to peers. Does this mean the market’s growth optimism is already priced in?

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

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

Build Your Own Globalstar Narrative

If you think there’s another story to tell or want to dig into the numbers on your own, you can easily shape your perspective and reach your own conclusion in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Globalstar.

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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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