DCF Tool

AVNW

Aviat Networks Inc – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
aviat networks, inc. (nasdaq: avnw) is a leading global provider of microwave networking solutions transforming communications networks to handle the exploding growth of ip-centric, multi-gigabit data services. with more than 750,000 systems installed around the world, aviat networks provides lte-proven microwave networking solutions to mobile operators, including some of the largest and most advanced 4g/lte networks in the world. public safety, utility, government and defense organizations also trust aviat networks’ solutions for their mission-critical applications where reliability is paramount. in conjunction with its networking solutions, aviat networks provides a comprehensive suite of localized professional and support services enabling customers to effectively and seamlessly migrate to next generation carrier ethernet/ip networks. for more than 50 years, customers have relied on aviat networks’ high performance and scalable solutions to help them maximize their investments and s
Analysis Results
Intrinsic Value $320.93
Latest Price $32.12
Relative Value 90% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 46.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 46.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 76.9 70.4
2024 113 94.5
2025 165 127
2026 242 170
2027 354 228
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5040 million. This corresponds to a present value of 2980 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 690 million. Adding in the terminal value gives a total present value of 3670 million.

There are presently 11.4 million outstanding shares, so the intrinsic value per share is 320.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 206,401,000
Current Cash 47,770,000
Current Liabilities 104,479,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,152,000
Change in NCWC 28,224,000
EBIT 28,983,000
Tax Provision 9,275,000
Depreciation and Amortization 4,463,000
Capital Expenditure -1,792,000
Unlevered Free Cash Flow 51,045,493
Current Assets 170,239,000
Current Cash 47,942,000
Current Liabilities 96,369,000
Current Debt 0
Non-Cash Working Capital (NCWC) 25,928,000
Change in NCWC 12,566,000
EBIT 24,481,000
Tax Provision -87,699,000
Depreciation and Amortization 5,383,000
Capital Expenditure -2,847,000
Unlevered Free Cash Flow 39,583,000
Current Assets 139,950,000
Current Cash 41,618,000
Current Liabilities 93,970,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 13,362,000
Change in NCWC -7,478,000
EBIT 7,427,000
Tax Provision 3,452,000
Depreciation and Amortization 4,387,000
Capital Expenditure -4,608,000
Unlevered Free Cash Flow -7,184,376
Current Assets 125,997,000
Current Cash 31,946,000
Current Liabilities 82,211,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 20,840,000
Change in NCWC 12,267,000
EBIT 2,104,000
Tax Provision -8,188,000
Depreciation and Amortization 4,468,000
Capital Expenditure -5,246,000
Unlevered Free Cash Flow 13,593,000
Current Assets 123,466,000
Current Cash 37,425,000
Current Liabilities 86,468,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 8,573,000
Change in NCWC -3,072,000
EBIT 2,596,000
Tax Provision -1,036,000
Depreciation and Amortization 5,199,000
Capital Expenditure -6,563,000
Unlevered Free Cash Flow -1,840,000
Current Assets 124,585,000
Current Cash 35,922,000
Current Liabilities 86,018,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 11,645,000
Change in NCWC -7,121,000
EBIT -396,000
Tax Provision 16,000
Depreciation and Amortization 5,840,000
Capital Expenditure -4,021,000
Unlevered Free Cash Flow -5,698,000
Current Assets 140,414,000
Current Cash 30,701,000
Current Liabilities 99,947,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 18,766,000
Change in NCWC -22,734,000
EBIT -24,991,000
Tax Provision 1,635,000
Depreciation and Amortization 6,648,000
Capital Expenditure -1,574,000
Unlevered Free Cash Flow -42,651,000
Current Assets 195,800,000
Current Cash 34,700,000
Current Liabilities 128,600,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 41,500,000
Change in NCWC -3,000,000
EBIT -21,100,000
Tax Provision -1,300,000
Depreciation and Amortization 7,600,000
Capital Expenditure -3,700,000
Unlevered Free Cash Flow -20,200,000
Current Assets 218,200,000
Current Cash 48,800,000
Current Liabilities 130,900,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 44,500,000
Change in NCWC -17,500,000
EBIT -39,600,000
Tax Provision 1,500,000
Depreciation and Amortization 7,500,000
Capital Expenditure -9,400,000
Unlevered Free Cash Flow -59,000,000
Current Assets 274,300,000
Current Cash 90,000,000
Current Liabilities 131,100,000
Current Debt 8,800,000
Non-Cash Working Capital (NCWC) 62,000,000
Change in NCWC 4,700,000
EBIT 4,800,000
Tax Provision 13,300,000
Depreciation and Amortization 6,600,000
Capital Expenditure -10,400,000
Unlevered Free Cash Flow -7,600,000
Current Assets 304,600,000
Current Cash 96,000,000
Current Liabilities 155,400,000
Current Debt 4,100,000
Non-Cash Working Capital (NCWC) 57,300,000
Change in NCWC -3,700,000
EBIT -4,800,000
Tax Provision 1,500,000
Depreciation and Amortization 7,200,000
Capital Expenditure -5,900,000
Unlevered Free Cash Flow -7,200,000

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