Viasat is still in value territory

Original Reddit post

Author argues Viasat is undervalued because Inmarsat-driven free cash flow can deleverage acquisition debt, flowing value to equity holders.

VSAT — LONG The author argues Viasat trades near enterprise-value-to-revenue parity, so using Inmarsat-driven free cash flow to pay down acquisition debt creates substantial equity value without needing growth, breakthroughs, or multiple expansion. Incremental debt reduction flows almost entirely to equity holders, and a normalized deleveraging path alone could plausibly double equity value, implying roughly 100% return on equity from the current price under conservative assumptions. The author frames this as a value opportunity worth at least $12 billion.

simply using Inmarsat-driven free cash flow to pay down acquisition debt creates substantial equity value without requiring growth, technological breakthroughs, or multiple expansion.