Discounted Cash Flow (DCF) Analysis Levered

Harmonic Inc. (HLIT)

$14.91

+0.15 (+1.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.32 | 14.91 | 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 358.25403.56402.87378.83507.15558.35614.72676.78745.11820.33
Revenue (%)
Operating Cash Flow 3.0612.2831.2939.1641.0233.603740.7344.8449.37
Operating Cash Flow (%)
Capital Expenditure -11.40-7.04-10.33-32.20-12.98-20.72-22.81-25.11-27.64-30.44
Capital Expenditure (%)
Free Cash Flow -8.345.2420.976.9628.0412.8914.1915.6217.2018.94

Weighted Average Cost Of Capital

Share price $ 14.91
Beta 0.875
Diluted Shares Outstanding 106.17
Cost of Debt
Tax Rate -49.41
After-tax Cost of Debt 5.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.819
Total Debt 190.21
Total Equity 1,583.01
Total Capital 1,773.22
Debt Weighting 10.73
Equity Weighting 89.27
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 358.25403.56402.87378.83507.15558.35614.72676.78745.11820.33
Operating Cash Flow 3.0612.2831.2939.1641.0233.603740.7344.8449.37
Capital Expenditure -11.40-7.04-10.33-32.20-12.98-20.72-22.81-25.11-27.64-30.44
Free Cash Flow -8.345.2420.976.9628.0412.8914.1915.6217.2018.94
WACC
PV LFCF 11.9812.2612.5512.8413.14
SUM PV LFCF 62.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.58
Free cash flow (t + 1) 19.32
Terminal Value 346.16
Present Value of Terminal Value 240.22

Intrinsic Value

Enterprise Value 303
Net Debt 56.78
Equity Value 246.22
Shares Outstanding 106.17
Equity Value Per Share 2.32