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	3,272	2,887	2,887	2,873	2,973	2,886.08	2,801.70	2,719.79	2,640.28	2,563.09
Revenue (%)
Operating Cash Flow	291	241	241	147	228.22	221.55	215.07	208.78	202.68	196.75
Operating Cash Flow (%)
Capital Expenditure	-59	-113	-113	-98	295	-18.01	-17.48	-16.97	-16.47	-15.99
Capital Expenditure (%)
Free Cash Flow	232	128	128	49	523.22	203.54	197.59	191.81	186.21	180.76

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	3,272	2,887	2,887	2,873	2,973	2,886.08	2,801.70	2,719.79	2,640.28	2,563.09
Operating Cash Flow	291	241	241	147	228.22	221.55	215.07	208.78	202.68	196.75
Capital Expenditure	-59	-113	-113	-98	295	-18.01	-17.48	-16.97	-16.47	-15.99
Free Cash Flow	232	128	128	49	523.22	203.54	197.59	191.81	186.21	180.76
WACC
PV LFCF						360.31	619.19	1,064.05	1,828.54	3,142.30
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