Discounted Cash Flow (DCF) Analysis Levered

Aviat Networks, Inc. (AVNW)

$30.75

-0.40 (-1.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.89 | 30.75 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	242.51	243.86	238.64	274.91	302.96	321	340.11	360.37	381.83	404.56
Revenue (%)
Operating Cash Flow	8.21	2.94	17.49	17.30	2.79	12.28	13.02	13.79	14.61	15.48
Operating Cash Flow (%)
Capital Expenditure	-6.56	-5.25	-4.61	-2.85	-1.79	-5.40	-5.72	-6.07	-6.43	-6.81
Capital Expenditure (%)
Free Cash Flow	1.65	-2.30	12.88	14.45	1	6.88	7.29	7.73	8.19	8.67

Weighted Average Cost Of Capital

Share price	$ 30.75
Beta	1.641
Diluted Shares Outstanding	11.82
Cost of Debt
Tax Rate	30.47
After-tax Cost of Debt	3.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.452
Total Debt	2.92
Total Equity	363.46
Total Capital	366.39
Debt Weighting	0.80
Equity Weighting	99.20
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	242.51	243.86	238.64	274.91	302.96	321	340.11	360.37	381.83	404.56
Operating Cash Flow	8.21	2.94	17.49	17.30	2.79	12.28	13.02	13.79	14.61	15.48
Capital Expenditure	-6.56	-5.25	-4.61	-2.85	-1.79	-5.40	-5.72	-6.07	-6.43	-6.81
Free Cash Flow	1.65	-2.30	12.88	14.45	1	6.88	7.29	7.73	8.19	8.67
WACC
PV LFCF						6.18	5.88	5.59	5.32	5.06
SUM PV LFCF										28.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.39
Free cash flow (t + 1)	8.85
Terminal Value	94.22
Present Value of Terminal Value	54.94

Intrinsic Value

Enterprise Value	82.96
Net Debt	-33.95
Equity Value	116.91
Shares Outstanding	11.82
Equity Value Per Share	9.89