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Voyager Technologies (VOYG) shares climbed 4% today. The solid move comes following recent earnings numbers, which revealed double-digit annual revenue growth and improving net income. This has sparked fresh discussion about the company’s underlying valuation.

See our latest analysis for Voyager Technologies.

Voyager Technologies has seen some sharp swings this year. Today’s 3.67% 1-day share price return adds to a recent rebound. Despite upbeat earnings news and double-digit growth, momentum is still recovering after a rough 90-day stretch. The share price is down more than 21% over that period and nearly 41% year-to-date. Long-term investors will be watching to see if renewed optimism signals a turning point for the stock.

If today’s jump has you looking for your next opportunity, it might be the perfect moment to discover fast growing stocks with high insider ownership.

With impressive earnings and a steep stock discount compared to analyst price targets, the big question now is whether Voyager Technologies is truly undervalued or if the market already reflects the company’s future growth prospects.

Voyager Technologies commands a hefty price-to-sales ratio of 12.5x, putting it well above both industry and peer averages at its latest closing price of $33.35. This means investors are paying a substantial premium for every dollar of current revenue compared to other U.S. Aerospace & Defense companies.

The price-to-sales ratio compares a company’s market value to its revenue, providing perspective when profits are negative or not meaningful, as is the case for Voyager. In sectors like Aerospace & Defense, this multiple is often used to gauge the market’s expectations for future growth, especially for companies not yet generating profits.

However, such a high price-to-sales multiple may signal market optimism about Voyager Technologies’ rapid growth, but it could also reflect overexuberance. When compared to the industry average of 3.2x and a peer average of 3.1x, Voyager’s 12.5x stands out as especially expensive. At these levels, investors should recognize that a lot of future success is already baked into the share price.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Sales of 12.5x (OVERVALUED)

However, sustained net losses and an outsized price-to-sales ratio could pose challenges if growth slows or if expectations cool in the months ahead.

Find out about the key risks to this Voyager Technologies narrative.

Taking a different approach, our DCF model places Voyager Technologies’ fair value at just $16.24 per share, compared to its current price of $33.35. This suggests the stock may actually be overvalued and raises the question: is investor optimism outpacing what the business can realistically deliver?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Voyager Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see things differently or want to dig deeper into the numbers, you can easily craft your own take on Voyager Technologies in just a few minutes. Do it your way.

A great starting point for your Voyager Technologies research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Don’t let your search stop with Voyager Technologies. Exceptional companies are waiting to be found, and now is the time to look beyond the obvious winners. Use Simply Wall Street’s powerful screener to make smart investing moves that set you ahead of the curve.

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.

Companies discussed in this article include VOYG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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