Iridium Communications Valuation
| IRDM Stock | USD 28.19 0.54 1.95% |
At this time, the firm appears to be overvalued. Iridium Communications retains a regular Real Value of $24.28 per share. The prevalent price of the firm is $28.19. Our model calculates the value of Iridium Communications from evaluating the firm fundamentals such as Return On Equity of 0.15, return on asset of 0.0477, and Current Valuation of 4.77 B as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Iridium Communications' valuation include:
Price Book 5.3208 | Enterprise Value | Enterprise Value Ebitda 11.7946 | Price Sales 3.6936 | Forward PE 27.933 |
Overvalued
Today
Please note that Iridium Communications' price fluctuation is not too volatile at this time. Calculation of the real value of Iridium Communications is based on 3 months time horizon. Increasing Iridium Communications' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Iridium stock is determined by what a typical buyer is willing to pay for full or partial control of Iridium Communications. Since Iridium Communications is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Iridium Stock. However, Iridium Communications' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 28.19 | Real 24.28 | Target 40.5 | Hype 28.19 |
The intrinsic value of Iridium Communications' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Iridium Communications' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Iridium Communications helps investors to forecast how Iridium stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Iridium Communications more accurately as focusing exclusively on Iridium Communications' fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Iridium Communications' intrinsic value based on its ongoing forecasts of Iridium Communications' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Iridium Communications' closest peers.
Iridium Communications Cash |
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Iridium Valuation Trend
Knowing Iridium Communications' actual value is paramount for traders when making sound investment determinations. Using both Iridium Communications' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Iridium Communications Total Value Analysis
Iridium Communications is currently forecasted to have valuation of 4.77 B with market capitalization of 3.07 B, debt of 33.12 M, and cash on hands of 218.76 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Iridium Communications fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
4.77 B | 3.07 B | 33.12 M | 218.76 M |
Iridium Communications Investor Information
About 12.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.42. Iridium Communications last dividend was issued on the 17th of March 2025. Based on the key indicators related to Iridium Communications' liquidity, profitability, solvency, and operating efficiency, Iridium Communications is performing exceptionally good at this time. It has a great probability to report excellent financial results in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 238.4 M | 376 M |
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Iridium Communications Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Iridium Communications has an asset utilization ratio of 31.09 percent. This suggests that the Company is making $0.31 for each dollar of assets. An increasing asset utilization means that Iridium Communications is more efficient with each dollar of assets it utilizes for everyday operations.Iridium Communications Ownership Allocation
Iridium Communications has a total of 108.84 Million outstanding shares. The majority of Iridium Communications outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Iridium Communications to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Iridium Communications. Please pay attention to any change in the institutional holdings of Iridium Communications as this could imply that something significant has changed or is about to change at the company. Also note that almost four million nine hundred fifty-two thousand one hundred seventy-four invesors are currently shorting Iridium Communications expressing very little confidence in its future performance.Iridium Communications Profitability Analysis
The company reported the previous year's revenue of 830.68 M. Net Income was 112.78 M with profit before overhead, payroll, taxes, and interest of 600.12 M.Iridium Communications Past Distributions to stockholders
About Iridium Communications Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Iridium Communications. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Iridium Communications based exclusively on its fundamental and basic technical indicators. By analyzing Iridium Communications's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Iridium Communications's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Iridium Communications. We calculate exposure to Iridium Communications's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Iridium Communications's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 652.5 M | 394.6 M | |
| Pretax Profit Margin | 0.13 | 0.14 | |
| Operating Profit Margin | 0.24 | 0.18 | |
| Net Profit Margin | 0.14 | 0.14 | |
| Gross Profit Margin | 0.79 | 0.57 |
A single share of Iridium Communications represents a small ownership stake in the entity. As a stockholder of Iridium, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Iridium Communications Dividends Analysis For Valuation
As of the 25th of March 2025, Dividend Yield is likely to grow to 0.02, though Dividends Paid is likely to grow to (61.5 M). . At this time, Iridium Communications' Earnings Yield is very stable compared to the past year. As of the 25th of March 2025, Price Earnings Ratio is likely to grow to 32.04, though Retained Earnings are likely to grow to (385.8 M).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -64.7 M | -61.5 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.57 | 0.50 | |
| Dividend Paid And Capex Coverage Ratio | 2.79 | 1.65 |
There are various types of dividends Iridium Communications can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Iridium shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Iridium Communications directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Iridium pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Iridium Communications by the value of the dividends paid out.
Iridium Communications Growth Indicators
Investing in growth stocks can be very risky. If the company such as Iridium Communications does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 119.8 M | |
| Quarterly Earnings Growth Y O Y | 0.079 | |
| Forward Price Earnings | 27.933 |
Iridium Communications Current Valuation Indicators
Iridium Communications' valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Iridium Communications' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Iridium Communications, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Iridium Communications' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Iridium Communications' worth.When determining whether Iridium Communications is a strong investment it is important to analyze Iridium Communications' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Iridium Communications' future performance. For an informed investment choice regarding Iridium Stock, refer to the following important reports: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Iridium Communications. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. To learn how to invest in Iridium Stock, please use our How to Invest in Iridium Communications guide.You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Iridium Communications. If investors know Iridium will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Iridium Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.079 | Dividend Share 0.55 | Earnings Share 0.94 | Revenue Per Share | Quarterly Revenue Growth 0.094 |
The market value of Iridium Communications is measured differently than its book value, which is the value of Iridium that is recorded on the company's balance sheet. Investors also form their own opinion of Iridium Communications' value that differs from its market value or its book value, called intrinsic value, which is Iridium Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Iridium Communications' market value can be influenced by many factors that don't directly affect Iridium Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Iridium Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Iridium Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Iridium Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.