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Coherent Corp – Optical Instrument and Lens Manufacturing
II-VI Incorporated, a global leader in engineered materials and optoelectronic components, is a vertically integrated manufacturing company that develops innovative products for diversified applications in communications, materials processing, aerospace & defense, semiconductor capital equipment, life sciences, consumer electronics, and automotive markets. Headquartered in Saxonburg, Pennsylvania, U.S.A., the Company has 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 support its customers.
Analysis Results
Intrinsic Value $128.12
Latest Price $34.85
Relative Value 73% 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 28.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 28.2%, 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 0.622 0.567
2023 0.797 0.663
2024 1.02 0.774
2025 1.31 0.905
2026 1.68 1.06
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 22.3 billion. This corresponds to a present value of 12.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.97 billion. Adding in the terminal value gives a total present value of 16.8 billion.

There are presently 131.0 million outstanding shares, so the intrinsic value per share is 128.12.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,358,570,000
Current Cash 913,068,000
Current Liabilities 764,430,000
Current Debt 36,834,000
Non-Cash Working Capital (NCWC) 717,906,000
Change in NCWC 232,688,000
EBIT 275,668,000
Tax Provision -17,574,000
Depreciation and Amortization 148,322,000
Capital Expenditure -165,126,000
Unlevered Free Cash Flow 491,552,000
Current Assets 1,211,664,000
Current Cash 475,604,000
Current Liabilities 268,058,000
Current Debt 17,216,000
Non-Cash Working Capital (NCWC) 485,218,000
Change in NCWC -78,199,000
EBIT 20,845,000
Tax Provision -28,584,000
Depreciation and Amortization 92,866,000
Capital Expenditure -64,919,000
Unlevered Free Cash Flow -29,407,000
Current Assets 1,094,821,000
Current Cash 305,953,000
Current Liabilities 240,314,000
Current Debt 14,863,000
Non-Cash Working Capital (NCWC) 563,417,000
Change in NCWC 3,296,000
EBIT 83,095,000
Tax Provision 6,223,000
Depreciation and Amortization 116,385,000
Capital Expenditure -83,283,000
Unlevered Free Cash Flow 110,881,552
Current Assets 1,238,502,000
Current Cash 310,615,000
Current Liabilities 372,838,000
Current Debt 5,072,000
Non-Cash Working Capital (NCWC) 560,121,000
Change in NCWC 138,100,000
EBIT 393,783,000
Tax Provision 114,195,000
Depreciation and Amortization 113,381,000
Capital Expenditure -90,757,000
Unlevered Free Cash Flow 430,132,977
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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