Discounted Cash Flow (DCF) Analysis Levered

Avaya Holdings Corp. (AVYA)

$2.87

-0.89 (-23.67%)
All numbers are in Millions, Currency in USD
Stock DCF: -30.10 | 2.87 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,2722,8872,8872,8732,9732,886.082,801.702,719.792,640.282,563.09
Revenue (%)
Operating Cash Flow 291241241147228.22221.55215.07208.78202.68196.75
Operating Cash Flow (%)
Capital Expenditure -59-113-113-98295-18.01-17.48-16.97-16.47-15.99
Capital Expenditure (%)
Free Cash Flow 23212812849523.22203.54197.59191.81186.21180.76

Weighted Average Cost Of Capital

Share price $ 2.87
Beta 1.678
Diluted Shares Outstanding 84.50
Cost of Debt
Tax Rate 750.00
After-tax Cost of Debt -47.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.043
Total Debt 3,013
Total Equity 242.51
Total Capital 3,255.51
Debt Weighting 92.55
Equity Weighting 7.45
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,2722,8872,8872,8732,9732,886.082,801.702,719.792,640.282,563.09
Operating Cash Flow 291241241147228.22221.55215.07208.78202.68196.75
Capital Expenditure -59-113-113-98295-18.01-17.48-16.97-16.47-15.99
Free Cash Flow 23212812849523.22203.54197.59191.81186.21180.76
WACC
PV LFCF 360.31619.191,064.051,828.543,142.30
SUM PV LFCF 7,014.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -43.51
Free cash flow (t + 1) 184.38
Terminal Value -405.13
Present Value of Terminal Value -7,042.73

Intrinsic Value

Enterprise Value -28.33
Net Debt 2,515
Equity Value -2,543.33
Shares Outstanding 84.50
Equity Value Per Share -30.10