Unity Software Inc (U) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Unity Software Inc stock $17.90, price $48.80, that is 63.3% below the price, quality 58 out of 100. Rating: strongly overvalued. Calculated from audited financials with 10 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $13.93 – $201.12 · fair‑value band $10.53 – $29.38 · the $48.80 price screens above the $17.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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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.
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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.
Stock analysis
Unity Software Inc (U) currently trades at $48.80, while our model-based Fair Value estimate is $17.90, 63% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $19.18 per share, and 0 of the 10 models we run sit above the $48.80 price.
Bear case: the DCF Models group reads lowest at $11.36, and 10 of the 10 models stay below the price. Data coverage for this calculation is low.
Scenario range: $10.53 (bear) to $29.38 (bull), the price of $48.80 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Unity Software Inc reported revenue of $1.8B in FY2025 versus $1.1B in FY2021, a compound +13.6%/yr. Reported net income was −$403M in FY2025.
Key figures
Market cap $21.4B Large · P/S ratio 8.94 · EPS (TTM) $−1.36 · Net margin −29.0% · Return on equity −17.4% · Return on assets (EBIT) −10.2% · Operating margin −5.2% · Revenue (TTM) $2.0B.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 10 out of 100 (low confidence).
What moves the price
The share trades about 1% below its 52-week high and 185% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 17% fair-value upside, at −63%, U screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely ($0.8200 to $19.78). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear$10.53Fair Value $17.90Bull$29.38
Price $48.80 · Downside -63.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 5 officers or directors sold shares worth $10.3M and none bought.
SaleAlexander BlumSVP, Chief Operating Officer6× since Nov 25, 2025: 142,609 shares, avg. $38.50$5.5MAug 28, 2026
SaleMatthew S BrombergPresident and CEO, Director3× since Nov 25, 2025: 196,401 shares, avg. $31.66$6.2MAug 25, 2026
SaleJarrod YahesSVP, Chief Financial Officer7× since Nov 6, 2025: 160,814 shares, avg. $37.69$6.1MAug 25, 2026
SaleRebecca Berenice BoydenSVP, Chief Legal Officer2× since May 26, 2026: 1,984 shares, avg. $36.62$72,663Aug 25, 2026
SaleMark BarrysmithChief Accounting Officer5× since Nov 17, 2025: 82,332 shares, avg. $37.57$3.1MMay 26, 2026
SaleTomer Bar-ZeevDirector2× since Dec 1, 2025: 425,000 shares, avg. $45.15$19.2MDec 12, 2025
SaleDavid HelgasonDirector708,347 shares at $49.86$35.3MDec 11, 202510b5-1 plan
SaleShlomo DovratDirector30,000 shares at $42.87$1.3MNov 11, 2025
Plus 12 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+2.0%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.1%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+25.3%
’18
’19
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−35.6% (2020) → −22.8% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+33.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+18.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +30.4% a year for the price and +15.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (97 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Limited evidence of durable advantage in a competitive software market pairs with ongoing losses and negative margins.
Main risk: Free open-source engines such as Godot and royalty-based Unreal Engine could capture more developers especially among indies and erode Unity's market position in game creation tools.
Bull case: Unity could integrate AI tools deeply into its platform and leverage its cross-platform strengths to retain developers even as free alternatives grow by offering superior ecosystem support and monetization features.
Bear case: If cheaper engines continue gaining traction among price-sensitive users and platform policies tighten Unity might see sustained loss of customers reduced subscription growth and pressure on its core create solutions business.
Unity is preparing to report third-quarter results next week after recent partnerships that give developers easier access to user-acquisition financing. Our models see the shares as overvalued given the quality of the business. Will the earnings show that ecosystem growth is finally translating into clearer profitability, or will investors keep focusing on the remaining losses?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 633 stocks
Beats the industry median on 2/9 measures
Overall it trails its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside−63.3% · Bottom 25%
Profitability
Return on assets−5.9% · Bottom 25%
Net margin (12 months)−29.0% · Bottom 25%
Operating margin (12 months)−5.2% · Bottom 25%
Growth and dividend
Revenue growth (quarter YoY)23.9% · Top 25%
Balance sheet
Debt / equity0.52× · Highest 25%
Valuation Multiplesvs Software - Application median · lower = cheaper
P/B6.60× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)10.54× · Priciest 25%
Price / free cash flow52.9× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 28
FUTURE (revenue growth)100· sector 40
PAST (return on equity)0· sector 20
HEALTH (low debt)74· sector 98
DIVIDEND (yield)0· sector 30
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Unity Software Inc (U) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $17.90 versus a price of $48.80, about 63% lower (overvalued).
What is the fair value of U?
Our model-based fair value for Unity Software Inc is $17.90 (as of Nov 5, 2026), built from audited fundamentals. The current price: $48.80.
What is the quality score of U?
Unity Software Inc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Unity Software Inc (U)?
Our model-based price target is the fair value of $17.90 (as of Nov 5, 2026) from 10 valuation models. Cautious scenario $10.53, optimistic scenario $29.38. It is a calculation from audited fundamentals, not an analyst target.
What is the Unity Software Inc stock forecast for 2026?
Our models put fair value at $17.90, about 63% lower versus a price of $48.80 (overvalued). Cautious scenario $10.53, optimistic scenario $29.38. The calculation is refreshed regularly with new filings.
What is the revenue of Unity Software Inc (U)?
Unity Software Inc reported trailing-twelve-month revenue of about $2.0B (latest available figure, as of Nov 5, 2026).
What growth is priced into Unity Software Inc (U)?
For today's price to be fair in a discounted-cash-flow model, Unity Software Inc would have to grow free cash flow by +33.5 % per year for five years (discount rate 11.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +19.1 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of U use?
Our models discount Unity Software Inc at 11.5 %: a base by market capitalisation (large), damped by beta 2.11, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Unity Software Inc that is +33.5 % per year a year over ten years, using the same discount rate (11.5 %) and the same formula as our fair value.
How much growth has Unity Software Inc (U) delivered so far?
Over the past 5 years revenue at Unity Software Inc grew +19.1 % a year. The price currently implies +33.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Unity Software Inc (U) growing?
The median revenue growth in the sector is +11.3 % a year. That is the yardstick for the growth priced into Unity Software Inc (+33.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Unity Software Inc (U)?
The free-cash-flow yield on the price is 1.89 %: that much free cash flow Unity Software Inc produces per unit of market value. When it exceeds the discount rate of our models (11.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Unity Software Inc (U)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Unity Software Inc it is $17.90 per share (as of Nov 5, 2026), against a price of $48.80. It is the blended result of 10 valuation models (cash flow, earnings, asset, dividend).
Is Unity Software Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, U trades above its calculated fair value: price $48.80, fair value $17.90, a gap of about −63% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of U?
No. The price is what the market pays today ($48.80); the fair value is what the company's own numbers justify ($17.90). For Unity Software Inc the two are $30.90 per share apart. That gap is exactly why we show both numbers side by side.
How much is Unity Software Inc worth?
The market values Unity Software Inc at about $21.4B (market capitalisation, as of Nov 5, 2026). Per share that is $48.80; our models calculate a fair value of $17.90 per share.
What do the bullish and bearish scenarios say about U?
Our models span a range for Unity Software Inc: cautious scenario $10.53, base $17.90, optimistic $29.38 per share (as of Nov 5, 2026, price $48.80). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Unity Software Inc (U)?
Balance-sheet figures for Unity Software Inc (as of Nov 5, 2026): return on equity −17.4%, debt of 0.52 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is U from its 52-week high?
Unity Software Inc trades at $48.80, about 1% below its 52-week high of $49.47 and 185% above the low of $17.13 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $17.90 is for.
Which stocks are comparable to Unity Software Inc?
From the same area (Technology) we also value SAP SE, Shopify Inc, Salesforce, Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Unity Software Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $48.80, calculated fair value $17.90 (−63%), Quality Score 58/100, from 10 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of U calculated?
We run Unity Software Inc through 10 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $17.90, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Unity Software Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Unity Software Inc (U)?
The closing price on Nov 5, 2026 was $48.80. Our model-based fair value is $17.90, about 63% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Unity Software Inc right now?
The price sits above even our optimistic bull case ($29.38). The favourable scenario is already priced in. The model range is unusually wide ($10.53 to $29.38). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Unity Software Inc
How large is the market capitalisation of Unity Software Inc (U)?
The market capitalisation of Unity Software Inc is $21.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Unity Software Inc (U)?
The price-to-sales ratio of Unity Software Inc is 8.94 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Unity Software Inc (U)?
Earnings per share at Unity Software Inc are $−1.36. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Unity Software Inc (U)?
The net margin of Unity Software Inc is −29.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Unity Software Inc (U)?
The return on equity (ROE) of Unity Software Inc is −17.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Unity Software Inc (U)?
On an EBIT basis the return on assets of Unity Software Inc is −10.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Unity Software Inc (U)?
The operating margin of Unity Software Inc is −5.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Unity Software Inc (U)?
Revenue at Unity Software Inc is growing +23.9% versus a year earlier (3y avg +10.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much net debt does Unity Software Inc (U) carry?
The net debt of Unity Software Inc is $330M (fiscal year 2025, ≈ 0.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Thin data
Nov 5, 2026