Unity Bancorp, Inc. (UNTY) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+72.4%

$101.08

vs $58.64 price

Levered DCF

$99.47

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

-0.48

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.95×	10.56×	7.61×	7.47×	7.56×	7.94×	10.35×	10.18×
P/B	1.5×	1.48×	1.16×	1.2×	1.33×	1.08×	1.52×	1.61×
P/S	2.75×	2.68×	2×	2.65×	2.85×	2.06×	2.91×	2.91×
EV / EBITDA	7.26×	8.56×	8.56×	10.55×	1.69×	11.44×	16.19×	14.46×
Gross margin	67.9%	62.5%	65.7%	86.2%	91.7%	76.4%	76.0%	79.6%
Operating margin	40.1%	33.4%	35.2%	47.5%	50.3%	34.2%	36.0%	35.7%
Net margin	30.8%	25.4%	26.3%	35.5%	37.7%	26.0%	28.1%	28.7%
Current ratio	0.16×	0.1×	0.15×	0.13×	0.18×	0.05×	0.07×	0.06×
Debt / equity	0.77×	0.78×	1.4×	1.67×	0.27×	1.22×	1.83×	1.59×
Interest coverage	1.33×	0.95×	1.09×	4.84×	6.22×	2.15×	1.68×	2.02×
Dividend yield	1.1%	1.1%	1.6%	1.5%	1.3%	1.8%	1.3%	1.3%
Payout ratio	9.7%	12.1%	11.9%	11.4%	10.0%	13.9%	13.8%	12.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.8%	14.0%	15.2%	16.1%	17.6%	13.6%	14.7%	15.8%
Return on invested capital	9.5%	7.5%	6.3%	6.1%	13.8%	6.0%	5.2%	6.1%
Return on assets	2.0%	1.6%	1.5%	1.6%	1.8%	1.2%	1.4%	1.4%
Free cash flow yield	8.5%	10.8%	15.2%	14.3%	11.5%	11.6%	13.3%	16.7%
Earnings yield	11.2%	9.5%	13.1%	13.4%	13.2%	12.6%	9.7%	9.8%
Enterprise value	$568.5M	$487.8M	$474M	$571.3M	$83.9M	$377.9M	$517M	$423M
Net debt / EBITDA	0.63×	0.88×	3.11×	5.24×	-3.8×	5.75×	8.52×	6.85×
Cash conversion cycle (days)	25	18	19	28	31	42	23	22