Discounted Cash Flow (DCF) Analysis Unlevered

Aviat Networks, Inc. (AVNW)

$28.79

-1.00 (-3.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 33.46 | 28.79 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 242.51243.86238.64274.91302.96321340.11360.37381.83404.56
Revenue (%)
EBITDA 6.046.128.1527.8234.9019.2920.4421.6622.9524.32
EBITDA (%)
EBIT 0.841.653.7622.4430.4313.3614.151515.8916.84
EBIT (%)
Depreciation 5.204.474.395.384.465.946.296.667.067.48
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 37.4331.9541.6247.9447.7750.8353.8657.0760.4764.07
Total Cash (%)
Account Receivables 57.2479.7272.7585.6673.1791.2296.65102.40108.50114.96
Account Receivables (%)
Inventories 22.809.5115.2324.8725.3923.8225.2426.7528.3430.03
Inventories (%)
Accounts Payable 30.8835.603232.4042.3942.7145.2547.9450.8053.82
Accounts Payable (%)
Capital Expenditure -6.56-5.25-4.61-2.85-1.79-5.40-5.72-6.07-6.43-6.81
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 28.79
Beta 1.734
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 11.883
Total Debt 2.92
Total Equity 340.30
Total Capital 343.22
Debt Weighting 0.85
Equity Weighting 99.15
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 242.51243.86238.64274.91302.96321340.11360.37381.83404.56
EBITDA 6.046.128.1527.8234.9019.2920.4421.6622.9524.32
EBIT 0.841.653.7622.4430.4313.3614.151515.8916.84
Tax Rate -45.73%-528.26%93.07%-390.82%30.47%-168.25%-168.25%-168.25%-168.25%-168.25%
EBIAT 1.2210.380.26110.1421.1635.8437.9740.2342.6345.16
Depreciation 5.204.474.395.384.465.946.296.667.067.48
Accounts Receivable --22.486.97-12.9112.49-18.05-5.43-5.76-6.10-6.46
Inventories -13.29-5.72-9.64-0.531.57-1.42-1.50-1.59-1.69
Accounts Payable -4.73-3.610.419.990.312.542.692.853.03
Capital Expenditure -6.56-5.25-4.61-2.85-1.79-5.40-5.72-6.07-6.43-6.81
UFCF -0.145.13-2.3290.5445.7820.2034.2336.2738.4240.71
WACC
PV UFCF 18.0727.3825.9424.5923.30
SUM PV UFCF 119.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.81
Free cash flow (t + 1) 41.53
Terminal Value 423.31
Present Value of Terminal Value 242.25

Intrinsic Value

Enterprise Value 361.52
Net Debt -33.95
Equity Value 395.47
Shares Outstanding 11.82
Equity Value Per Share 33.46