Unity Software Inc (U)
OvervaluedFundamental
44
Price
$40.93
Market Cap
$17.54B
Part 1 · What the company is worth
Overview
Unity Software Inc. operates a platform to develop, deploy, and grow games and interactive experiences for mobile phones, PCs, consoles, and extended reality devices in the United States, China, Hong Kong, Taiwan, Europe, the Middle East, Africa, the Asia Pacific, Canada, and Latin America. The company's platform offers artificial intelligence solutions that support developers through the entire development lifecycle, which includes prototyping, live service operation, user acquisition, and monetization. It also provides Create Solutions, a set of tools and services used to build, ship, and run real-time 2D and 3D content; and Grow Solutions, which allows customers to grow and engage their user base and monetize their content. In addition, the company offers enterprise support and consumption services; professional services, including consulting, platform integration, training, and custom application and workflow development services; and advertising and game publishing services. It provides its solutions directly through its online store, field sales operations, independent distributors, and resellers. The company serves enterprises, mid-market companies, government, and non-profit institutions; mid-sized, small, and independent businesses; and individuals from various industries. Unity Software Inc. was founded in 2004 and is headquartered in San Francisco, California.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$2.03B
Trailing 12 months (through 6/30/2026)
Net Income
$-588M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$404M
Total Equity
$3.24B
Total Liabilities
$3.34B
Current Ratio
2.03
Interest Coverage
25.52
Debt/EBITDA
-
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$32.14
Current Price
$40.93
Margin of Safety
-27.3%
Fair Value Range
$20.89 - $43.39
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
-
ROE
-12.4%
P/B Ratio
5.94
P/FCF
33.46
Gross Margin
64.9%
ROIC
-9.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
-9.6%
WACC
14.1%
ROIC − WACC
-23.7 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (11)
- EPS shows upward trend
- Gross Margin 64.9%
- Debt/Equity ratio
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Revenue Growth 5Y 19.1%
- Analyst Consensus 85% Buy
- Earnings Surprise avg 14.8%
- Piotroski F-Score 6/9
Failed (11)
- Price CAGR -18.81%
- ROIC -9.6%
- P/FCF 33.46
- P/B Ratio 5.94
- Operating Margin -30.4%
- Return on Tangible Assets
- Low reliance on intangibles
- DCF valuation (Overvalued)
- ROE -18.9%
- Share Dilution 6.1%
- Net Margin Trend -29.0% vs -24.4%
Unavailable (5)
- Dividend Payout NaN%
- Debt/EBITDA
- Price below Graham Number
- PEG Ratio (need PE > 0 and growth > 0)
- Earnings Quality (OCF/Net Income)
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
Low quality: investigate accounting
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Matthew Samuel Bromberg J.D. | CEO, President & Director | 59 |
| Mr. Jarrod Yahes | CFO & Senior VP | 49 |
| Mr. Alexander Blum | COO & Senior VP | 62 |
| Mr. Felix The | Senior VP of Product & Technology and Chief AI Officer of Grow | 40 |
| Mr. Joachim Christoph Ante | Co-Founder | 42 |
| Mr. Alexander Joseph Giaimo | Head of Investor Relations | - |
| Ms. Rebecca Boyden | Senior VP, Chief Legal Officer & Corporate Secretary | - |
| Ms. Marisa Eddy | Senior VP & Chief People Officer | - |
| Adam Smith | Senior Vice President of Product of Unity Engine | - |
| Shanti Gaudreault | Senior Vice President of Engineering | - |
Audit Risk
4
Board Risk
8
Compensation Risk
10
Shareholder Rights Risk
8
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-11
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-06
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-19
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for U, sourced from Markets Gazette.
- 3/26/2026POSITIVEUnity Software Stock Soars After The Close: Here's Why
Unity Software Inc. experienced a significant surge in its stock price during after-hours trading following the release of preliminary first-quarter results. While specific figures were not detailed in the initial report, the market's positive reaction suggests these preliminary results exceeded investor expectations. This upward movement indicates renewed confidence in Unity's business outlook and its ability to execute its strategy. Investors will be closely watching for the full financial report to understand the drivers behind this positive momentum and its implications for future growth.
- 3/13/2026POSITIVEAI Is Coming for Unity Software. Here's Why It Survives.
Despite widespread fears of AI-driven disruption in the software sector, Unity Software Inc. is poised for resilience. The company's core offerings in game development and real-time 3D are seen as adaptable rather than obsolete in the face of AI advancements. Investors should note that Unity's platform is increasingly being leveraged for non-gaming applications, such as industrial simulations and architectural visualization, diversifying its revenue streams. This strategic expansion, coupled with ongoing innovation in its engine capabilities, suggests a robust future outlook, mitigating immediate threats from AI competition.
- 3/2/2026POSITIVEAre Unity and Zillow Resilient Brands?
Markets Gazette delves into the intrinsic value of companies boasting strong consumer appeal, highlighting Unity and Zillow as prime examples. The core question explored is why such brands consistently tend to outperform the broader market. The analysis suggests that brand resilience, customer loyalty, and a deep connection with their user base are pivotal factors. For investors, this implies that brand strength is not merely an intangible asset but a predictive indicator of financial stability and sustainable growth. Companies that successfully build and maintain a robust relationship with their consumers are often better positioned to navigate economic challenges and capitalize on market opportunities, offering superior return potential.
via Markets Gazette