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Coherent Corp – Optical Instrument and Lens Manufacturing
ii-vi incorporated, a global leader in engineered materials and optoelectronic devices and components, is a vertically integrated manufacturing company that develops innovative products for diversified applications in the industrial, optical communications, military, life sciences, semiconductor equipment and consumer markets. headquartered in saxonburg, pennsylvania, with research and development, manufacturing, sales, service and distribution facilities worldwide, the company produces a wide variety of application-specific photonic and electronic materials and components and deploys them in various forms, including integrated with advanced software, to enable our customers’ success.
Analysis Results
Intrinsic Value $128.32
Latest Price $66.89
Relative Value 48% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 28.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 28.9%, 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)
2024 1.09 0.965
2025 1.41 1.1
2026 1.82 1.25
2027 2.34 1.43
2028 3.02 1.63
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 27.6 billion. This corresponds to a present value of 13.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.37 billion. Adding in the terminal value gives a total present value of 19.5 billion.

There are presently 152.0 million outstanding shares, so the intrinsic value per share is 128.32.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,251,998,000
Current Cash 833,333,000
Current Liabilities 1,078,748,000
Current Debt 74,836,000
Non-Cash Working Capital (NCWC) 1,414,753,000
Change in NCWC 555,679,000
EBIT 81,981,000
Tax Provision -96,100,000
Depreciation and Amortization 681,687,000
Capital Expenditure -436,060,000
Unlevered Free Cash Flow 883,287,000
Current Assets 4,305,192,000
Current Cash 2,582,371,000
Current Liabilities 1,266,959,000
Current Debt 403,212,000
Non-Cash Working Capital (NCWC) 859,074,000
Change in NCWC 91,111,000
EBIT 414,294,000
Tax Provision 47,048,000
Depreciation and Amortization 286,779,000
Capital Expenditure -314,332,000
Unlevered Free Cash Flow 408,685,144
Current Assets 3,027,394,000
Current Cash 1,591,892,000
Current Liabilities 729,589,000
Current Debt 62,050,000
Non-Cash Working Capital (NCWC) 767,963,000
Change in NCWC 409,010,000
EBIT 402,119,000
Tax Provision 55,038,000
Depreciation and Amortization 270,069,000
Capital Expenditure -146,337,000
Unlevered Free Cash Flow 872,091,705
Current Assets 1,788,969,000
Current Cash 493,046,000
Current Liabilities 672,893,000
Current Debt 69,250,000
Non-Cash Working Capital (NCWC) 692,280,000
Change in NCWC 207,062,000
EBIT 39,479,000
Tax Provision 3,101,000
Depreciation and Amortization 220,882,000
Capital Expenditure -136,877,000
Unlevered Free Cash Flow 330,546,000
Current Assets 812,911,000
Current Cash 204,872,000
Current Liabilities 270,563,000
Current Debt 23,834,000
Non-Cash Working Capital (NCWC) 361,310,000
Change in NCWC -202,107,000
EBIT 149,968,000
Tax Provision 21,296,000
Depreciation and Amortization 92,365,000
Capital Expenditure -137,122,000
Unlevered Free Cash Flow -121,689,448
Current Assets 761,837,000
Current Cash 247,038,000
Current Liabilities 236,467,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 298,332,000
Change in NCWC -261,789,000
EBIT 138,887,000
Tax Provision 34,192,000
Depreciation and Amortization 80,770,000
Capital Expenditure -153,438,000
Unlevered Free Cash Flow -234,432,990
Current Assets 1,311,664,000
Current Cash 475,576,000
Current Liabilities 419,145,000
Current Debt 5,078,000
Non-Cash Working Capital (NCWC) 422,021,000
Change in NCWC 187,829,000
EBIT 322,995,000
Tax Provision 93,411,000
Depreciation and Amortization 104,245,000
Capital Expenditure -63,774,000
Unlevered Free Cash Flow 451,408,270
Current Assets 815,639,000
Current Cash 399,953,000
Current Liabilities 201,494,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 234,192,000
Change in NCWC 1,505,000
EBIT 127,614,000
Tax Provision 35,394,000
Depreciation and Amortization 34,355,000
Capital Expenditure -49,327,000
Unlevered Free Cash Flow 77,394,217
Current Assets 680,801,000
Current Cash 325,515,000
Current Liabilities 122,599,000
Current Debt 0
Non-Cash Working Capital (NCWC) 232,687,000
Change in NCWC -12,774,000
EBIT 101,448,000
Tax Provision 23,159,000
Depreciation and Amortization 33,059,000
Capital Expenditure -22,163,000
Unlevered Free Cash Flow 75,973,721
Current Assets 681,055,000
Current Cash 318,275,000
Current Liabilities 117,319,000
Current Debt 0
Non-Cash Working Capital (NCWC) 245,461,000
Change in NCWC 12,171,000
EBIT 76,866,000
Tax Provision 20,113,000
Depreciation and Amortization 36,201,000
Capital Expenditure -23,390,000
Unlevered Free Cash Flow 82,332,405
Current Assets 629,226,000
Current Cash 250,110,000
Current Liabilities 145,828,000
Current Debt 2,000
Non-Cash Working Capital (NCWC) 233,290,000
Change in NCWC -2,495,000
EBIT 84,899,000
Tax Provision 17,141,000
Depreciation and Amortization 36,123,000
Capital Expenditure -21,988,000
Unlevered Free Cash Flow 79,109,976
Current Assets 614,485,000
Current Cash 224,929,000
Current Liabilities 153,788,000
Current Debt 17,000
Non-Cash Working Capital (NCWC) 235,785,000
Change in NCWC 37,732,000
EBIT 88,830,000
Tax Provision 27,660,000
Depreciation and Amortization 29,649,000
Capital Expenditure -36,051,000
Unlevered Free Cash Flow 93,046,961

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