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Viavi Solutions Inc – Semiconductor and Related Device Manufacturing
viavi (nasdaq: viav) software and hardware platforms and instruments deliver end-to-end visibility across physical, virtual and hybrid networks. precise intelligence and actionable insight from across the network ecosystem optimizes the service experience for increased customer loyalty, greater profitability and quicker transitions to next-generation technologies. viavi is also a leader in anti-counterfeiting solutions for currency authentication and high-value optical components and instruments for diverse government and commercial applications.
Analysis Results
Intrinsic Value $18.14
Latest Price $8.40
Relative Value 54% undervalued
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Cash Flow (Millions)
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 6.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.4%, 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)
2024 110 106
2025 117 110
2026 125 113
2027 133 116
2028 141 120
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 4240 million. This corresponds to a present value of 3470 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 565 million. Adding in the terminal value gives a total present value of 4030 million.

There are presently 222.0 million outstanding shares, so the intrinsic value per share is 18.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 945,000,000
Current Cash 506,500,000
Current Liabilities 343,500,000
Current Debt 96,200,000
Non-Cash Working Capital (NCWC) 191,200,000
Change in NCWC 46,900,000
EBIT 94,500,000
Tax Provision 35,200,000
Depreciation and Amortization 69,500,000
Capital Expenditure -51,100,000
Unlevered Free Cash Flow 104,999,341
Current Assets 1,005,100,000
Current Cash 559,900,000
Current Liabilities 369,300,000
Current Debt 68,400,000
Non-Cash Working Capital (NCWC) 144,300,000
Change in NCWC 20,800,000
EBIT 184,900,000
Tax Provision 49,600,000
Depreciation and Amortization 75,400,000
Capital Expenditure -72,500,000
Unlevered Free Cash Flow 67,723,809
Current Assets 1,112,100,000
Current Cash 697,800,000
Current Liabilities 705,000,000
Current Debt 414,200,000
Non-Cash Working Capital (NCWC) 123,500,000
Change in NCWC -19,600,000
EBIT 140,600,000
Tax Provision 63,300,000
Depreciation and Amortization 102,300,000
Capital Expenditure -52,100,000
Unlevered Free Cash Flow 89,847,349
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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