Unity Software Inc. U
Composite 43/100; the shares have moved about 58% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 22/100 — a strong mark against it.
Momentum ranks 63/100 — a moderate point in its favour. Balance-sheet strength ranks 62/100 — a moderate point in its favour. Growth ranks 57/100 — a slight point in its favour.
Valuation ranks 22/100 — a strong mark against it. Quality ranks 23/100 — a strong mark against it.
What the company does Unity Software Inc. provides a platform for developing and operating 2D and 3D content across various devices. Their solutions support the entire development lifecycle, from prototyping to monetization, and include AI tools for developers.
Key financials Unity reported a gross margin of 74% but negative operating and net margins of -15% and -35%, respectively. Revenue growth was 16%, while EPS growth was 0%. The company has a Debt/Equity of 0.72 and a current ratio of 1.95.
Stock health The stock has a beta of 2.05, indicating higher volatility. Its overall Sideravia score is 40, reflecting "Poor quality, richly valued," with a Quality score of 18. Momentum is mixed, with a 3-month gain of 27% but a 6-month loss of -16%.
Price vs fair value The stock is trading at a PREMIUM of 50% versus our fair-value estimate and at a discount of 6% versus the analyst 12-month target. - Zacks recently highlighted Unity as a "Best Growth Stock to Buy" (Zacks). - News headlines indicate Unity's earnings are "Expected to Grow" (Zacks). - The stock recently "Overtook the 200-Day Moving Average" (Zacks). - Several reports noted Unity "Recently Broke Out Above the 20-Day Moving Average" and "50-Day Moving Average" (Zacks).
Looking forward With a forward P/E of 30 and an EV/EBITDA of 134, the company appears richly valued based on current metrics. However, recent positive news from Zacks regarding growth prospects and technical breakouts may be influencing investor sentiment.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-03, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.