Unity Software Inc (U) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Unity Software Inc stock (U) is currently trading at $17.80. Unity Software Inc PS ratio (Price-to-Sales) is 4.25. Analyst consensus price target for U is $32.33. WallStSmart rates U as Sell.
- U PE ratio analysis and historical PE chart
- U PS ratio (Price-to-Sales) history and trend
- U intrinsic value — DCF, Graham Number, EPV models
- U stock price prediction 2025 2026 2027 2028 2029 2030
- U fair value vs current price
- U insider transactions and insider buying
- Is U undervalued or overvalued?
- Unity Software Inc financial analysis — revenue, earnings, cash flow
- U Piotroski F-Score and Altman Z-Score
- U analyst price target and Smart Rating
Unity Software Inc
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Smart Analysis
Unity Software Inc (U) · 8 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in institutional own.. Concerns around return on equity and operating margin. Significant fundamental concerns warrant caution or avoidance.
Unity Software Inc (U) Key Strengths (2)
81.09% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Unity Software Inc (U) Areas to Watch (6)
Company is destroying shareholder value
Losing money on operations
Company is losing money with a negative profit margin
Premium valuation at 4.2x annual revenue
Fairly priced relative to book value
Solid revenue growth at 10.10% per year
Unity Software Inc (U) Detailed Analysis Report
Overall Assessment
This company scores 31/100 in our Smart Analysis, earning a F grade. Out of 8 metrics analyzed, 2 register as strengths (avg 8.5/10) while 6 fall into concern territory (avg 2.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Profit Margin. Some valuation metrics including Price/Sales (4.25), Price/Book (2.46) suggest expensive pricing. Growth concerns include Revenue Growth at 10.10%, which may limit upside. Profitability pressure is visible in Return on Equity at -11.60%, Operating Margin at -19.70%, Profit Margin at -21.80%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -11.60% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 10.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
U Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
U's Price-to-Sales ratio of 4.25x trades at a deep discount to its historical average of 14.84x (8th percentile). The current valuation is 92% below its historical high of 55.66x set in Nov 2020, and 45% above its historical low of 2.93x in Jun 2024.
WallStSmart Analysis Synopsis
Data-driven financial summary for Unity Software Inc (U) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Unity Software Inc is in a turnaround phase, with management focused on restoring profitability. Revenue reached 1.8B with 10% growth year-over-year. The company is currently unprofitable, posting a -21.8% profit margin.
Key Findings
Generating 119M in free cash flow and 121M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -21.8% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Volatility is elevated with a beta of 2.18, so expect amplified moves relative to the broader market.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Unity Software Inc.
Bottom Line
Unity Software Inc is in turnaround mode. The path to profitability remains the critical question. Speculative investors may see opportunity in the recovery story, but conservative investors should wait for consistent positive earnings before committing capital.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Unity Software Inc(U)
NYSE
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Unity Software Inc. operates a real-time 3D development platform. The company is headquartered in San Francisco, California.