DCF Tool

CMTL

Comtech Telecommunications Corp. – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Comtech Telecommunications Corp. designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets.
Analysis Results
Intrinsic Value $17.52
Latest Price $12.57
Relative Value 28% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 -1.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -1.5%, 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 36.3 33.6
2024 35.8 30.5
2025 35.3 27.8
2026 34.7 25.3
2027 34.2 23.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 558 million. This corresponds to a present value of 347 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 140 million. Adding in the terminal value gives a total present value of 487 million.

There are presently 27.8 million outstanding shares, so the intrinsic value per share is 17.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 263,331,000
Current Cash 21,654,000
Current Liabilities 193,457,000
Current Debt 0
Non-Cash Working Capital (NCWC) 48,220,000
Change in NCWC -4,854,000
EBIT -20,198,000
Tax Provision -4,023,000
Depreciation and Amortization 31,710,000
Capital Expenditure -19,619,000
Unlevered Free Cash Flow -12,961,000
Current Assets 287,496,000
Current Cash 30,861,000
Current Liabilities 203,561,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,074,000
Change in NCWC -16,490,000
EBIT 31,994,000
Tax Provision -1,500,000
Depreciation and Amortization 30,399,000
Capital Expenditure -16,037,000
Unlevered Free Cash Flow 29,866,000
Current Assets 277,097,000
Current Cash 47,878,000
Current Liabilities 159,712,000
Current Debt 57,000
Non-Cash Working Capital (NCWC) 69,564,000
Change in NCWC -20,584,000
EBIT 35,928,000
Tax Provision 2,290,000
Depreciation and Amortization 32,156,000
Capital Expenditure -7,225,000
Unlevered Free Cash Flow 31,437,715
Current Assets 280,314,000
Current Cash 45,576,000
Current Liabilities 145,347,000
Current Debt 757,000
Non-Cash Working Capital (NCWC) 90,148,000
Change in NCWC 108,000
EBIT 44,074,000
Tax Provision 3,869,000
Depreciation and Amortization 30,247,000
Capital Expenditure -8,785,000
Unlevered Free Cash Flow 59,745,615
Current Assets 279,793,000
Current Cash 43,484,000
Current Liabilities 165,316,000
Current Debt 19,047,000
Non-Cash Working Capital (NCWC) 90,040,000
Change in NCWC 17,248,000
EBIT 35,075,000
Tax Provision -5,143,000
Depreciation and Amortization 34,730,000
Capital Expenditure -8,642,000
Unlevered Free Cash Flow 78,411,000
Current Assets 241,044,000
Current Cash 41,844,000
Current Liabilities 144,211,000
Current Debt 17,803,000
Non-Cash Working Capital (NCWC) 72,792,000
Change in NCWC 5,445,000
EBIT 25,022,000
Tax Provision 9,654,000
Depreciation and Amortization 37,177,000
Capital Expenditure -8,150,000
Unlevered Free Cash Flow 50,013,901
Current Assets 303,639,000
Current Cash 66,805,000
Current Liabilities 184,146,000
Current Debt 14,659,000
Non-Cash Working Capital (NCWC) 67,347,000
Change in NCWC -18,119,000
EBIT 20,700,000
Tax Provision -454,000
Depreciation and Amortization 23,245,000
Capital Expenditure -5,667,000
Unlevered Free Cash Flow 20,159,000
Current Assets 300,756,000
Current Cash 150,953,000
Current Liabilities 64,337,000
Current Debt 0
Non-Cash Working Capital (NCWC) 85,466,000
Change in NCWC 15,310,000
EBIT 34,077,000
Tax Provision 10,758,000
Depreciation and Amortization 12,736,000
Capital Expenditure -3,362,000
Unlevered Free Cash Flow 47,979,587
Current Assets 290,844,000
Current Cash 154,500,000
Current Liabilities 66,188,000
Current Debt 0
Non-Cash Working Capital (NCWC) 70,156,000
Change in NCWC 6,238,000
EBIT 43,898,000
Tax Provision 13,356,000
Depreciation and Amortization 13,006,000
Capital Expenditure -4,937,000
Unlevered Free Cash Flow 42,979,153
Current Assets 489,651,000
Current Cash 356,642,000
Current Liabilities 269,091,000
Current Debt 200,000,000
Non-Cash Working Capital (NCWC) 63,918,000
Change in NCWC -2,409,000
EBIT 34,489,000
Tax Provision 9,685,000
Depreciation and Amortization 14,165,000
Capital Expenditure -5,347,000
Unlevered Free Cash Flow 28,748,508

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.