Globalstar (GSAT): Evaluating Valuation Following Recent Share Price Momentum

Globalstar (GSAT) shares have caught some attention recently, with investors noticing a steady rise over the past month. The stock is up about 43% during that period, which has sparked renewed discussion about its growth prospects.

See our latest analysis for Globalstar.

The excitement around Globalstar isn’t just about this month’s rally. The company has been on a roll with a year-to-date share price return of over 91%. Add that to a five-year total shareholder return of more than 1,100%, and it’s clear that momentum has been building, fueled by renewed optimism about future growth and some headline-grabbing partnership updates along the way.

If Globalstar’s performance has you curious about what else could be on the rise, now’s a great opportunity to broaden your search and discover fast growing stocks with high insider ownership

The real question for investors now is whether Globalstar’s impressive gains leave more room to run, or if the market has already factored in all the upside. Is this the start of another rally, or has growth been fully priced in?

Most Popular Narrative: 9.8% Undervalued

At $60.89 per share, Globalstar’s current price is below the most widely followed narrative fair value of $67.50. This suggests narrative followers see further upside, but strong assumptions about the company’s transformation are key to justifying that premium.

The global rollout of the RM200 2-way module with over 50 partners in advanced testing signals accelerating adoption across industrial, defense, and commercial IoT markets. As more assets require always-on connectivity, this trend is increasing subscriber numbers and raising ARPU, ultimately benefiting future revenue and margin expansion.

Read the complete narrative.

Want to see what’s fueling this optimism? Hidden behind Globalstar’s fair value are aggressive growth assumptions and margin expansion projections that could reshape the company’s profile. Discover the numbers that unlock the narrative’s higher price target.

Result: Fair Value of $67.50 (UNDERVALUED)

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

However, risks remain, especially if key partnerships stall or if competitive technologies advance faster than Globalstar can adapt. This could potentially mute future returns.

Find out about the key risks to this Globalstar narrative.

Another View: Multiples Signal Extreme Valuation

While the narrative-based fair value paints Globalstar as undervalued, market ratios tell a different story. The company trades at 29.5 times sales, far above peer and industry averages near 1x, and even its fair ratio of 2.1x. This kind of gap often signals heightened risk. Will investors continue paying up, or is a correction coming?

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

Build Your Own Globalstar Narrative

If you have a different perspective or want to dig into the details yourself, you can quickly craft your own view in just a few minutes, Do it your way

A great starting point for your Globalstar research is our analysis highlighting 1 key reward 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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