Viasat - High Growth Stock Case

In: Business and Management

Submitted By nberenji
Words 1365
Pages 6
[PROJECT 1 - VIASAT]

Rational behind selecting a company for purpose of investment in high growth portfolio that may span about a decade. Discuss possible return that may be expected and how it compares with more established companies with less risk.

Introduction:

Viasat (VSAT) is the company I like to select for valuation assignment. VSAT is a San Diego based company that is in the business of Satellite communications and traded on NASDAQ. Viasat provides products and services evenly across both government and commercial sectors. VSAT may be considered as a mid-size company that has been growing very fast. Therefor it may be considered as an investment with a good return compared to similar technology companies in wireless broadband communications domain.
Company’s profile

The company is in the business of making products and services for broadband communication covering both commercial and government sectors. Some of the examples on the commercial side are broadband Internet service for residential customers (similar to cable or DSL providers) via high speed satellite systems. Another example is providing Internet service in commercial airplanes such as United or JetBlue. On the Enterprise side we provide services for live events (e.g. concerts), Satellite News Gathering (SNG), and first responders. As you can imagine Satellite’s services main strength is in the rural areas where broadband Internet services are not readily available. However, company’s services are also used in the metropolitan cities as well.
Government/military sector currently provides about 50% of Viasat’s business. An example of service for government is (High Definition) HD video service providing tactical information to the ground forces. Or providing technology to secure various communications means for the military.
Rational for selection of the…...

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