EchoStar (SATS) Valuation Check After Big One Year Rally And Recent Pullback

EchoStar (SATS) has drawn investor attention after recent share price swings, including a one-month return of around a 15% decline, alongside a gain of about 51% over the past three months, prompting closer scrutiny of its fundamentals.

See our latest analysis for EchoStar.

Those sharp moves sit alongside a 51.3% 3 month share price return and a 1 year total shareholder return of about 270%, which together suggest momentum has been strong recently, even after the latest pullback.

If recent volatility has you looking beyond EchoStar, this could be a good moment to broaden your search with our list of 22 top founder-led companies.

With EchoStar showing a 270% 1 year total return, a value score of 1 and shares trading about 16% below the average analyst price target, investors may wonder whether there is still a buying opportunity or if the market is already pricing in future growth.

Most Popular Narrative: 13.6% Undervalued

EchoStar's most followed valuation story puts fair value at about $124.29 per share, compared with the last close of $107.42, framing the recent rally in a different light.

EchoStar's investment in a unique wideband LEO direct-to-device satellite constellation, leveraging its global S-band and AWS-4 spectrum rights, positions it to address skyrocketing global demand for ubiquitous connectivity across consumer, enterprise, government, and IoT applications. This is likely to create new, high-margin wholesale revenue streams and accelerate long-term revenue growth.

Read the complete narrative.

Curious how a loss making company gets to that valuation gap. The narrative leans heavily on a future shift in margins, revenue mix and what multiple investors might accept if those numbers materialise.

Result: Fair Value of $124.29 (UNDERVALUED)

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

However, there are still real pressure points, including a shrinking legacy Pay-TV and broadband base, as well as heavy near term debt and funding needs that could challenge this story.

Find out about the key risks to this EchoStar narrative.

Next Steps

With all that in mind, are you leaning bullish or cautious on EchoStar right now, and ready to move quickly to shape your own view around the company’s pressure points and upside potential? A helpful next step is to review the 1 important warning sign our research has surfaced so you can see exactly what might matter most to your thesis.

Looking for more investment ideas?

If EchoStar has sharpened your thinking, do not stop here. Use this momentum to size up a broader watchlist of stocks that could fit your goals.

• Target potential value opportunities by reviewing our list of 53 high quality undervalued stocks that pair fundamentals with pricing that may still leave room on the table.
• Prioritise resilience first by checking our 85 resilient stocks with low risk scores that screen for companies with steadier risk profiles that might suit a more cautious stance.
• Hunt for underfollowed ideas by scanning the screener containing 23 high quality undiscovered gems and see which lesser known names match the qualities you care about most.

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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