DCF Tool

VIAV

Viavi Solutions Inc – Semiconductor and Related Device Manufacturing
VIAVI is a global provider of network test, monitoring and assurance solutions for communications service providers, enterprises, network equipment manufacturers, government and avionics. We help these customers harness the power of instruments, automation, intelligence and virtualization to Command the network. VIAVI is also a leader in light management solutions for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, and defense applications.
Analysis Results
Intrinsic Value $8.71
Latest Price $13.05
Relative Value 50% overvalued
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Cash Flow (Millions)
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 5.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.7%, 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 97.2 90.6
2024 103 89.2
2025 109 87.9
2026 115 86.6
2027 121 85.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2340 million. This corresponds to a present value of 1530 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 440 million. Adding in the terminal value gives a total present value of 1970 million.

There are presently 226.0 million outstanding shares, so the intrinsic value per share is 8.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,005,100,000
Current Cash 561,300,000
Current Liabilities 369,300,000
Current Debt 68,400,000
Non-Cash Working Capital (NCWC) 142,900,000
Change in NCWC 21,000,000
EBIT 184,900,000
Tax Provision 49,600,000
Depreciation and Amortization 75,400,000
Capital Expenditure -72,500,000
Unlevered Free Cash Flow 67,923,809
Current Assets 1,112,100,000
Current Cash 699,400,000
Current Liabilities 705,000,000
Current Debt 414,200,000
Non-Cash Working Capital (NCWC) 121,900,000
Change in NCWC -21,200,000
EBIT 140,600,000
Tax Provision 63,300,000
Depreciation and Amortization 102,300,000
Capital Expenditure -52,100,000
Unlevered Free Cash Flow 88,247,349
Current Assets 913,600,000
Current Cash 540,500,000
Current Liabilities 232,800,000
Current Debt 2,800,000
Non-Cash Working Capital (NCWC) 143,100,000
Change in NCWC 33,300,000
EBIT 121,600,000
Tax Provision 65,300,000
Depreciation and Amortization 107,800,000
Capital Expenditure -31,900,000
Unlevered Free Cash Flow 146,326,808
Current Assets 916,800,000
Current Cash 523,000,000
Current Liabilities 284,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 109,800,000
Change in NCWC 23,800,000
EBIT 82,800,000
Tax Provision 31,500,000
Depreciation and Amortization 112,200,000
Capital Expenditure -45,000,000
Unlevered Free Cash Flow 107,433,587
Current Assets 1,152,600,000
Current Cash 780,700,000
Current Liabilities 561,200,000
Current Debt 275,300,000
Non-Cash Working Capital (NCWC) 86,000,000
Change in NCWC 84,400,000
EBIT 13,400,000
Tax Provision 13,400,000
Depreciation and Amortization 83,400,000
Capital Expenditure -42,500,000
Unlevered Free Cash Flow 138,700,000
Current Assets 1,667,000,000
Current Cash 1,436,600,000
Current Liabilities 228,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,600,000
Change in NCWC -16,100,000
EBIT 35,200,000
Tax Provision 21,300,000
Depreciation and Amortization 57,700,000
Capital Expenditure -38,600,000
Unlevered Free Cash Flow 34,181,993
Current Assets 1,211,700,000
Current Cash 967,600,000
Current Liabilities 226,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,700,000
Change in NCWC -173,700,000
EBIT 17,600,000
Tax Provision 4,500,000
Depreciation and Amortization 70,600,000
Capital Expenditure -35,500,000
Unlevered Free Cash Flow -121,000,000
Current Assets 1,380,100,000
Current Cash 813,200,000
Current Liabilities 375,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 191,400,000
Change in NCWC 35,800,000
EBIT -17,800,000
Tax Provision 5,200,000
Depreciation and Amortization 140,000,000
Capital Expenditure -101,500,000
Unlevered Free Cash Flow 56,500,000
Current Assets 1,409,500,000
Current Cash 845,500,000
Current Liabilities 408,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 155,600,000
Change in NCWC -45,000,000
EBIT 22,100,000
Tax Provision -13,100,000
Depreciation and Amortization 131,500,000
Capital Expenditure -99,800,000
Unlevered Free Cash Flow 8,800,000
Current Assets 1,030,300,000
Current Cash 482,000,000
Current Liabilities 347,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 200,600,000
Change in NCWC -26,700,000
EBIT -5,900,000
Tax Provision -103,900,000
Depreciation and Amortization 144,600,000
Capital Expenditure -65,100,000
Unlevered Free Cash Flow 46,900,000
Current Assets 1,310,200,000
Current Cash 721,600,000
Current Liabilities 654,100,000
Current Debt 292,800,000
Non-Cash Working Capital (NCWC) 227,300,000
Change in NCWC 34,600,000
EBIT 6,100,000
Tax Provision 12,000,000
Depreciation and Amortization 157,800,000
Capital Expenditure -72,200,000
Unlevered Free Cash Flow 126,300,000

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