DCF Tool

COMM

CommScope Holding Company Inc – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
CommScope Holding Company Inc. is pushing the boundaries of technology to create the world's most advanced wired and wireless networks. Its global team of employees, innovators and technologists empower customers to anticipate what's next and invent what's possible.
Analysis Results
Intrinsic Value $97.90
Latest Price $7.86
Relative Value 92% 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 4.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.0%, 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 0.987 0.923
2023 1.03 0.898
2024 1.07 0.874
2025 1.11 0.851
2026 1.16 0.828
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.9 billion. This corresponds to a present value of 16.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.37 billion. Adding in the terminal value gives a total present value of 20.4 billion.

There are presently 208.0 million outstanding shares, so the intrinsic value per share is 97.9.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,579,700,000
Current Cash 360,300,000
Current Liabilities 2,182,500,000
Current Debt 32,000,000
Non-Cash Working Capital (NCWC) 1,068,900,000
Change in NCWC 157,700,000
EBIT 154,200,000
Tax Provision -71,900,000
Depreciation and Amortization 786,300,000
Capital Expenditure -131,400,000
Unlevered Free Cash Flow 966,800,000
Current Assets 3,354,500,000
Current Cash 521,900,000
Current Liabilities 1,953,400,000
Current Debt 32,000,000
Non-Cash Working Capital (NCWC) 911,200,000
Change in NCWC 7,600,000
EBIT 243,300,000
Tax Provision -81,100,000
Depreciation and Amortization 823,300,000
Capital Expenditure -121,200,000
Unlevered Free Cash Flow 953,000,000
Current Assets 3,511,800,000
Current Cash 598,200,000
Current Liabilities 2,042,000,000
Current Debt 32,000,000
Non-Cash Working Capital (NCWC) 903,600,000
Change in NCWC 174,592,000
EBIT -44,700,000
Tax Provision -144,500,000
Depreciation and Amortization 770,900,000
Capital Expenditure -104,100,000
Unlevered Free Cash Flow 796,692,000
Current Assets 1,877,825,000
Current Cash 458,195,000
Current Liabilities 690,622,000
Current Debt 0
Non-Cash Working Capital (NCWC) 729,008,000
Change in NCWC -37,157,000
EBIT 508,993,000
Tax Provision 30,495,000
Depreciation and Amortization 357,458,000
Capital Expenditure -82,347,000
Unlevered Free Cash Flow 656,023,447
Current Assets 1,943,859,000
Current Cash 453,977,000
Current Liabilities 723,717,000
Current Debt 0
Non-Cash Working Capital (NCWC) 766,165,000
Change in NCWC 45,947,000
EBIT 521,392,000
Tax Provision 15,968,000
Depreciation and Amortization 378,012,000
Capital Expenditure -68,721,000
Unlevered Free Cash Flow 836,933,685
Current Assets 1,993,764,000
Current Cash 428,228,000
Current Liabilities 857,818,000
Current Debt 12,500,000
Non-Cash Working Capital (NCWC) 720,218,000
Change in NCWC -48,966,000
EBIT 656,177,000
Tax Provision 49,731,000
Depreciation and Amortization 399,053,000
Capital Expenditure -68,314,000
Unlevered Free Cash Flow 818,228,614
Current Assets 2,004,640,000
Current Cash 562,884,000
Current Liabilities 685,092,000
Current Debt 12,520,000
Non-Cash Working Capital (NCWC) 769,184,000
Change in NCWC 137,699,000
EBIT 301,865,000
Tax Provision 8,874,000
Depreciation and Amortization 303,500,000
Capital Expenditure -56,501,000
Unlevered Free Cash Flow 686,563,000
Current Assets 1,827,618,000
Current Cash 729,321,000
Current Liabilities 475,813,000
Current Debt 9,001,000
Non-Cash Working Capital (NCWC) 631,485,000
Change in NCWC 108,301,000
EBIT 608,812,000
Tax Provision 80,291,000
Depreciation and Amortization 259,504,000
Capital Expenditure -36,935,000
Unlevered Free Cash Flow 785,510,354

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