Iridium Communications Inc.

NasdaqGS:IRDM Stock Report

Market Cap: US$3.1b

Iridium Communications Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: IRDM ($25.79) is trading below our estimate of fair value ($80.47)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

IRDM 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/Revenue5.8x
Enterprise Value/EBITDA11.4x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does IRDM's PE Ratio compare to its peers?

The above table shows the PE ratio for IRDM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average83.4x
CCOI Cogent Communications Holdings
2.6x-70.6%US$3.1b
SIFY Sify Technologies
137.8x114.4%US$73.4m
CIBY CIBL
109.4xn/aUS$22.8m
USM United States Cellular
83.8x20.9%US$4.9b
IRDM Iridium Communications
123.8x46.5%US$3.1b

Price-To-Earnings vs Peers: IRDM is expensive based on its Price-To-Earnings Ratio (123.8x) compared to the peer average (83.4x).


Price to Earnings Ratio vs Industry

How does IRDM's PE Ratio compare vs other companies in the Global Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: IRDM is expensive based on its Price-To-Earnings Ratio (123.8x) compared to the Global Telecom industry average (16.2x).


Price to Earnings Ratio vs Fair Ratio

What is IRDM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRDM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio123.8x
Fair PE Ratio30x

Price-To-Earnings vs Fair Ratio: IRDM is expensive based on its Price-To-Earnings Ratio (123.8x) compared to the estimated Fair Price-To-Earnings Ratio (30x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IRDM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$25.79
US$39.80
+54.3%
17.0%US$50.00US$30.00n/a5
Jul ’25US$26.56
US$39.80
+49.8%
17.0%US$50.00US$30.00n/a5
Jun ’25US$30.11
US$39.80
+32.2%
17.0%US$50.00US$30.00n/a5
May ’25US$31.32
US$39.77
+27.0%
15.5%US$50.00US$30.00n/a6
Apr ’25US$25.99
US$42.23
+62.5%
21.4%US$58.40US$30.00n/a6
Mar ’25US$29.71
US$42.23
+42.2%
21.4%US$58.40US$30.00n/a6
Feb ’25US$35.99
US$59.34
+64.9%
18.4%US$75.00US$45.00n/a7
Jan ’25US$41.16
US$60.50
+47.0%
18.0%US$75.00US$45.00n/a6
Dec ’24US$39.21
US$60.50
+54.3%
18.0%US$75.00US$45.00n/a6
Nov ’24US$36.72
US$64.67
+76.1%
11.7%US$75.00US$53.00n/a6
Oct ’24US$45.49
US$66.83
+46.9%
8.6%US$75.00US$57.00n/a6
Sep ’24US$49.53
US$67.20
+35.7%
9.2%US$75.00US$57.00n/a5
Aug ’24US$52.00
US$67.40
+29.6%
9.2%US$75.00US$57.00n/a5
Jul ’24US$62.12
US$65.80
+5.9%
17.8%US$76.00US$45.00US$26.565
Jun ’24US$61.11
US$67.00
+9.6%
19.1%US$76.00US$45.00US$30.114
May ’24US$63.48
US$67.00
+5.5%
19.1%US$76.00US$45.00US$31.324
Apr ’24US$61.93
US$64.25
+3.7%
18.0%US$75.00US$45.00US$25.994
Mar ’24US$61.59
US$64.25
+4.3%
18.0%US$75.00US$45.00US$29.714
Feb ’24US$60.94
US$61.50
+0.9%
17.8%US$75.00US$45.00US$35.994
Jan ’24US$51.40
US$57.75
+12.4%
13.4%US$66.00US$45.00US$41.164
Dec ’23US$52.66
US$57.75
+9.7%
13.4%US$66.00US$45.00US$39.214
Nov ’23US$51.32
US$57.00
+11.1%
12.5%US$66.00US$45.00US$36.725
Oct ’23US$44.37
US$51.40
+15.8%
8.7%US$60.00US$48.00US$45.495
Sep ’23US$44.69
US$51.40
+15.0%
8.7%US$60.00US$48.00US$49.535
Aug ’23US$44.79
US$51.40
+14.8%
8.7%US$60.00US$48.00US$52.005
Jul ’23US$38.14
US$51.20
+34.2%
8.9%US$60.00US$48.00US$62.125

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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