DCF Tool

AVT

Avnet Inc. – Business to Business Electronic Markets
As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for an entire century. It supports customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Its unique position at the center of the technology value chain enables it to accelerate the design and supplies stages of product development so customers can realize revenue faster. Decade after decade, Avnet helps its customers and suppliers around the world realize the transformative possibilities of technology.
Analysis Results
Intrinsic Value $61.40
Latest Price $46.30
Relative Value 25% undervalued
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Cash Flow (Billions)
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 -3.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -3.6%, 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 (billion) Present value (billion)
2022 0.492 0.454
2023 0.475 0.404
2024 0.457 0.359
2025 0.441 0.319
2026 0.425 0.284
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6.78 billion. This corresponds to a present value of 4.18 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1.82 billion. Adding in the terminal value gives a total present value of 6.0 billion.

There are presently 97.7 million outstanding shares, so the intrinsic value per share is 61.4.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,163,421,000
Current Cash 199,691,000
Current Liabilities 3,055,238,000
Current Debt 23,078,000
Non-Cash Working Capital (NCWC) 3,931,570,000
Change in NCWC 360,117,000
EBIT 365,799,000
Tax Provision -20,185,000
Depreciation and Amortization 188,699,000
Capital Expenditure -50,363,000
Unlevered Free Cash Flow 864,252,000
Current Assets 6,328,806,000
Current Cash 477,038,000
Current Liabilities 2,280,366,000
Current Debt 51,000
Non-Cash Working Capital (NCWC) 3,571,453,000
Change in NCWC -480,740,000
EBIT 221,334,000
Tax Provision -98,574,000
Depreciation and Amortization 242,895,000
Capital Expenditure -73,516,000
Unlevered Free Cash Flow -90,027,000
Current Assets 6,876,336,000
Current Cash 546,105,000
Current Liabilities 2,578,576,000
Current Debt 300,538,000
Non-Cash Working Capital (NCWC) 4,052,193,000
Change in NCWC -133,200,000
EBIT 611,451,000
Tax Provision 62,157,000
Depreciation and Amortization 180,842,000
Capital Expenditure -122,690,000
Unlevered Free Cash Flow 379,527,309
Current Assets 7,610,599,000
Current Cash 621,125,000
Current Liabilities 2,969,461,000
Current Debt 165,380,000
Non-Cash Working Capital (NCWC) 4,185,393,000
Change in NCWC 172,953,000
EBIT 557,081,000
Tax Provision 287,966,000
Depreciation and Amortization 234,872,000
Capital Expenditure -155,873,000
Unlevered Free Cash Flow 521,067,000
Current Assets 7,533,808,000
Current Cash 1,117,710,000
Current Liabilities 2,453,771,000
Current Debt 50,113,000
Non-Cash Working Capital (NCWC) 4,012,440,000
Change in NCWC -170,161,000
EBIT 598,815,000
Tax Provision 47,053,000
Depreciation and Amortization 155,360,000
Capital Expenditure -120,397,000
Unlevered Free Cash Flow 372,844,837
Current Assets 9,003,973,000
Current Cash 1,031,478,000
Current Liabilities 4,942,493,000
Current Debt 1,152,599,000
Non-Cash Working Capital (NCWC) 4,182,601,000
Change in NCWC 414,262,000
EBIT 866,987,000
Tax Provision 163,978,000
Depreciation and Amortization 126,479,000
Capital Expenditure -147,548,000
Unlevered Free Cash Flow 1,048,151,832
Current Assets 8,642,073,000
Current Cash 932,553,000
Current Liabilities 4,272,296,000
Current Debt 331,115,000
Non-Cash Working Capital (NCWC) 3,768,339,000
Change in NCWC -143,151,000
EBIT 918,478,000
Tax Provision 141,052,000
Depreciation and Amortization 147,319,000
Capital Expenditure -174,374,000
Unlevered Free Cash Flow 566,561,595
Current Assets 8,954,199,000
Current Cash 928,971,000
Current Liabilities 4,978,826,000
Current Debt 865,088,000
Non-Cash Working Capital (NCWC) 3,911,490,000
Change in NCWC 547,209,000
EBIT 884,563,000
Tax Provision 155,523,000
Depreciation and Amortization 137,188,000
Capital Expenditure -123,242,000
Unlevered Free Cash Flow 1,249,505,485
Current Assets 8,356,878,000
Current Cash 1,009,343,000
Current Liabilities 4,821,444,000
Current Debt 838,190,000
Non-Cash Working Capital (NCWC) 3,364,281,000
Change in NCWC 42,954,000
EBIT 775,482,000
Tax Provision 99,192,000
Depreciation and Amortization 120,676,000
Capital Expenditure -97,379,000
Unlevered Free Cash Flow 701,688,375
Current Assets 8,254,439,000
Current Cash 1,006,864,000
Current Liabilities 4,798,652,000
Current Debt 872,404,000
Non-Cash Working Capital (NCWC) 3,321,327,000
Change in NCWC 4,103,000
EBIT 957,750,000
Tax Provision 223,763,000
Depreciation and Amortization 101,336,000
Capital Expenditure -128,652,000
Unlevered Free Cash Flow 663,528,032

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