Uniti Group (UNIT) has taken a sizable step toward expanding its international fiber network by establishing a key presence at MDC San Diego. This move is expected to enhance cross-border data and network capacity between the U.S. and Mexico for businesses relying on high-speed connectivity.
See our latest analysis for Uniti Group.
Uniti Group’s latest move into the MDC San Diego data center comes after several notable initiatives, including new funding rounds and a continued push in managed network security. Despite this momentum and the clear demand for cross-border fiber connectivity, Uniti’s share price has slid this year. The 1-year total shareholder return is -37.1%, reflecting lingering market caution even amid long-term growth plans.
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With the stock trading well below analyst targets, and fresh expansion news in play, the question facing investors is whether Uniti Group remains undervalued or if the market has already accounted for its next wave of international growth.
Uniti Group’s most widely followed narrative puts its fair value at $7.48, which is well above the last closing price of $5.80. With the stock discounted versus this target, one expansion catalyst stands out as central to the valuation debate.
Robust and expanding deal pipeline with hyperscalers ($1.5 billion in total contract value, 40% of sales funnel), alongside rising lease-up opportunities and cross-selling with Windstream, is expected to drive higher-margin, low-capex, long-term contracts. This could boost EBITDA and net earnings as industry demand for bandwidth and low-latency networks escalates.
Think Uniti’s future is already priced in? This valuation hinges on an earnings story powered by rapid recurring revenue growth, margin potential, and ambitious expansion assumptions. What numbers are embedded in these forecasts? Click through to see the full logic behind the target price and decide if the projections hold up.
Result: Fair Value of $7.48 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent declines in legacy revenues and ongoing earnings volatility could shift sentiment if Uniti’s fiber transition or cost management strategies do not meet expectations.
Find out about the key risks to this Uniti Group narrative.
Looking at Uniti Group’s valuation through a price-to-earnings lens reveals a different picture. The company trades at 40.7 times earnings, substantially above its industry average of 16.7x and the fair ratio of 14x. This wide premium suggests the market is pricing in lofty growth or expecting strong future profitability. Could such optimism hold, or does it raise risks if progress stalls?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:UNIT PE Ratio as at Oct 2025
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A great starting point for your Uniti Group research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.
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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 UNIT.
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