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Company Overview Gogo Inc. ( Gogo , the Company , we or us ) is the only multi-orbit, multi-band in-flight connectivity provider offering connectivity technology purpose-built for business and military/government aviation. We have a holistic approach of providing broadband connectivity services to our customers from small to large aircraft and heavy jets through our air-to-ground ( ATG ) techno…
$3.55
$0.04 (-0.98%)
Live · 05:22 PM
12.53% operating margin is respectable but not wide. ROIC at 10.06%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 104.7%, still solid.
At 35x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $781M represents 12.0x FCF, leverage limits flexibility.
35.4x earnings, 199.2x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$907M
▲ +104.7% YoY
Net Income (TTM)
$14M
▼ -6.0% YoY
Op. Margin
12.20%
▲ +1.0pp YoY
ROIC
9.43%
▲ +4.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2M
▲ +133.2% YoY
Op. Cash Flow (TTM)
$85M
▲ +200.5% YoY
Net Debt
$800M
Cash & Equiv.
$104M
5Y CAGR: +27.5%
5Y CAGR: +89.1%
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At a P/E of 35.4 and a price-to-free-cash-flow of 199.2, Gogo (GOGO) trades above a two-stage DCF intrinsic value of about $-5.54 per share, so at $3.55 the stock looks overvalued (256.1% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Gogo scores 32/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-5.54 per share for GOGO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-4.15. At today's $3.55, that puts the stock about 256.1% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Gogo scores 32 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 12.2% operating margin and a 9.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. GOGO currently trades above its estimated intrinsic value and scores 32/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.