IRDM Valuation

Iridium Communications Inc

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24.140

+0.01(0.041%)1D

Overview
Forecast
Valuation
Earnings

IRDM Relative Valuation

IRDM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IRDM is overvalued; if below, it's undervalued.

Historical Valuation

Iridium Communications Inc (IRDM) is now in the Undervalued zone, suggesting that its current forward PS ratio of 2.86 is considered Undervalued compared with the five-year average of -102.10. The fair price of Iridium Communications Inc (IRDM) is between 32.82 to 62.44 according to relative valuation methord. Compared to the current price of 24.13 USD , Iridium Communications Inc is Undervalued By 26.48%.

Relative Value

Fair Zone

32.82-62.44

Current Price：24.13

26.48%

Undervalued

24.49

Trailing

Forward

8.55

EV/EBITDA

Iridium Communications Inc. (IRDM) has a current EV/EBITDA of 8.55. The 5-year average EV/EBITDA is 14.73. The thresholds are as follows: Strongly Undervalued below 7.56, Undervalued between 7.56 and 11.14, Fairly Valued between 18.31 and 11.14, Overvalued between 18.31 and 21.89, and Strongly Overvalued above 21.89. The current Forward EV/EBITDA of 8.55 falls within the Undervalued range.

19.14

EV/EBIT

Iridium Communications Inc. (IRDM) has a current EV/EBIT of 19.14. The 5-year average EV/EBIT is 82.74. The thresholds are as follows: Strongly Undervalued below -20.80, Undervalued between -20.80 and 30.97, Fairly Valued between 134.50 and 30.97, Overvalued between 134.50 and 186.27, and Strongly Overvalued above 186.27. The current Forward EV/EBIT of 19.14 falls within the Undervalued range.

2.86

Iridium Communications Inc. (IRDM) has a current PS of 2.86. The 5-year average PS is 6.75. The thresholds are as follows: Strongly Undervalued below 2.35, Undervalued between 2.35 and 4.55, Fairly Valued between 8.94 and 4.55, Overvalued between 8.94 and 11.14, and Strongly Overvalued above 11.14. The current Forward PS of 2.86 falls within the Undervalued range.

6.52

P/OCF

Iridium Communications Inc. (IRDM) has a current P/OCF of 6.52. The 5-year average P/OCF is 16.25. The thresholds are as follows: Strongly Undervalued below 6.10, Undervalued between 6.10 and 11.17, Fairly Valued between 21.33 and 11.17, Overvalued between 21.33 and 26.40, and Strongly Overvalued above 26.40. The current Forward P/OCF of 6.52 falls within the Undervalued range.

8.08

P/FCF

Iridium Communications Inc. (IRDM) has a current P/FCF of 8.08. The 5-year average P/FCF is 18.42. The thresholds are as follows: Strongly Undervalued below 7.29, Undervalued between 7.29 and 12.85, Fairly Valued between 23.98 and 12.85, Overvalued between 23.98 and 29.55, and Strongly Overvalued above 29.55. The current Forward P/FCF of 8.08 falls within the Undervalued range.

Iridium Communications Inc (IRDM) has a current Price-to-Book (P/B) ratio of 5.37. Compared to its 3-year average P/B ratio of 5.43 , the current P/B ratio is approximately -1.08% higher. Relative to its 5-year average P/B ratio of 4.78, the current P/B ratio is about 12.23% higher. Iridium Communications Inc (IRDM) has a Forward Free Cash Flow (FCF) yield of approximately 12.85%. Compared to its 3-year average FCF yield of 6.51%, the current FCF yield is approximately 97.39% lower. Relative to its 5-year average FCF yield of 5.79% , the current FCF yield is about 121.92% lower.

5.42

P/B

Median3y

5.43

Median5y

4.78

12.85

FCF Yield

Median3y

6.51

Median5y

5.79

Competitors Valuation Multiple

The average P/S ratio for IRDM's competitors is 1.02, providing a benchmark for relative valuation. Iridium Communications Inc Corp (IRDM) exhibits a P/S ratio of 2.86, which is 179.31% above the industry average. Given its robust revenue growth of 7.88%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

IRDM.O

Iridium Communications Inc

Ituran Location and Control Ltd

Cambium Networks Corp

Performance Decomposition

Market capitalization of IRDM decreased by 5.49% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.44 to 24.04.

The secondary factor is the Revenue Growth, contributed 7.88%to the performance.

Overall, the performance of IRDM in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.88%

201.07M → 216.91M

Revenue Growth

-37.00%

16.08 → 10.13

Margin Expansion

23.63%

19.44 → 24.04

P/E Change

-5.49%