As of December 15, 2025, Unisys Corp's estimated intrinsic value ranges from $3.66 to $26.38 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $26.38 | +800.3% |
| Discounted Cash Flow (5Y) | $15.43 | +426.7% |
| Dividend Discount Model (Multi-Stage) | $3.66 | +25.0% |
| Earnings Power Value | $20.73 | +607.6% |
Is Unisys Corp (UIS) undervalued or overvalued?
With the current market price at $2.93, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Unisys Corp's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.27 | 1.46 |
| Cost of equity | 9.7% | 13.1% |
| Cost of debt | 6.8% | 7.0% |
| Tax rate | 20.3% | 40.7% |
| Debt/Equity ratio | 2.36 | 2.36 |
| After-tax WACC | 6.7% | 6.8% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $15 | $1,514M | 90.6% |
| 10-Year Growth | $26 | $2,294M | 80.1% |
| 5-Year EBITDA | $32 | $2,693M | 94.7% |
| 10-Year EBITDA | $36 | $3,004M | 84.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $128M |
| Discount Rate (WACC) | 6.8% - 6.7% |
| Enterprise Value | $1,876M - $1,907M |
| Net Debt | $413M |
| Equity Value | $1,463M - $1,494M |
| Outstanding Shares | 71M |
| Fair Value | $21 - $21 |
| Selected Fair Value | $20.73 |
| Metric | Value |
|---|---|
| Market Capitalization | $209M |
| Enterprise Value | $622M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 17.80 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 2.36 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $7.91 |
| Discounted Cash Flow (5Y) | 29% | $3.86 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.73 |
| Earnings Power Value | 12% | $2.07 |
| Weighted Average | 100% | $17.15 |
Based on our comprehensive valuation analysis, Unisys Corp's intrinsic value is $17.15, which is approximately 485.3% above the current market price of $2.93.
Key investment considerations:
Given these factors, we believe Unisys Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.