Stock Analysis & Valuation Viasat, Inc. (0LPE.L)

• Previous Close: £45.44
• Sector Valuation Confidence Level: Low

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	25.90	-43
Intrinsic value (DCF)	5.22	-89
Graham-Dodd Method	0.30	-99
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Viasat, Inc. (LSE: 0LPE.L) is a leading global communications company specializing in satellite-based broadband and connectivity solutions. Headquartered in Carlsbad, California, Viasat operates in the Technology sector, specifically within the Communication Equipment industry. The company provides high-speed internet, in-flight connectivity, maritime broadband, and secure government communications through its advanced satellite networks. Viasat serves diverse markets, including residential consumers, commercial airlines, maritime operators, and defense sectors. With a strong focus on innovation, Viasat invests heavily in next-generation satellite technology, including GEO, MEO, and LEO platforms, to enhance global connectivity. The company’s vertically integrated model—spanning satellite services, ground infrastructure, and chip design—positions it as a key player in the evolving satellite communications landscape. As demand for high-speed, reliable connectivity grows, Viasat is well-positioned to capitalize on opportunities in underserved and remote markets.

Investment Summary

Viasat presents a high-risk, high-reward investment opportunity due to its aggressive growth strategy in satellite broadband and government communications. The company’s revenue of $4.28B (FY 2024) reflects strong demand, but net losses (-$1.07B) and high debt ($7.64B) raise concerns about profitability. Positive operating cash flow ($688M) suggests operational efficiency, but heavy capital expenditures (-$1.54B) indicate ongoing investments in satellite infrastructure. The lack of dividends and volatile beta (1.017) align with its growth-focused, speculative profile. Investors should weigh its technological leadership against execution risks in a capital-intensive industry.

Competitive Analysis

Viasat competes in the satellite communications market with a focus on high-throughput satellites (HTS) and integrated solutions. Its key competitive advantage lies in proprietary technologies like ViaSat-3, which offers global coverage with high-speed capabilities. The company’s vertical integration—from chip design to end-user services—provides cost and innovation advantages. However, competition is intensifying with LEO satellite operators like SpaceX’s Starlink, which offers lower latency and scalable coverage. Viasat’s strength in aviation (in-flight connectivity) and government contracts provides stable revenue streams, but its GEO-based infrastructure faces challenges from LEO rivals in consumer broadband. Strategic partnerships (e.g., with airlines and defense agencies) and its acquisition of Inmarsat (pending regulatory approval) could enhance its global footprint. The company’s ability to monetize its satellite investments and manage debt will be critical in maintaining competitiveness against well-funded rivals.

Major Competitors

• EchoStar Corporation (SATS): EchoStar operates the HughesNet satellite internet service, competing directly with Viasat in residential broadband. Its Jupiter satellite fleet provides coverage in the Americas but lacks Viasat’s global reach. Strengths include a strong rural customer base, but its slower speeds compared to Viasat-3 limit competitiveness. EchoStar’s lower debt profile offers financial flexibility.
• Iridium Communications Inc. (IRDM): Iridium specializes in low-Earth orbit (LEO) satellite services, offering global voice and data connectivity. Its Crosslink network is ideal for IoT and maritime applications, but its narrowband services are less competitive in high-speed broadband. Iridium’s asset-light model and strong government contracts provide stability, but it lacks Viasat’s scale in commercial aviation.
• Viasat, Inc. (VSAT): Note: This is the primary NASDAQ-listed entity of Viasat. The LSE ticker (0LPE.L) represents the same company. Competitors should not include the same entity.
• SpaceX (Starlink) (TSLA): SpaceX’s Starlink is a disruptive force with its LEO constellation, offering low-latency, high-speed internet globally. Its scalability and lower launch costs pose a significant threat to Viasat’s GEO-based services. However, Starlink’s focus on consumer markets and limited penetration in aviation/government sectors leaves room for Viasat to differentiate.
• Orbcomm Inc. (ORB): Orbcomm provides IoT and M2M satellite solutions, targeting logistics and heavy equipment markets. Its niche focus avoids direct competition with Viasat’s broadband services, but its limited bandwidth capabilities restrict expansion into high-throughput applications. Acquired by GI Partners in 2021, Orbcomm’s private status reduces transparency.