Discounted Cash Flow (DCF) Analysis Unlevered

Avnet, Inc. (AVT)

$45.93

-0.04 (-0.09%)

All numbers are in Millions, Currency in USD

Stock DCF: -34.20 | 45.93 | overvalue

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	19,036.89	19,518.59	17,634.33	19,534.68	24,310.71	26,018.66	27,846.61	29,802.97	31,896.79	34,137.70
Revenue (%)
EBITDA	468.94	554.21	235.98	451.10	1,088.92	698.82	747.92	800.47	856.70	916.89
EBITDA (%)
EBIT	234.07	373.37	-6.91	262.40	933.71	431.24	461.54	493.97	528.67	565.81
EBIT (%)
Depreciation	234.87	180.84	242.89	188.70	155.21	267.58	286.38	306.50	328.03	351.08
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	621.13	546.11	477.04	199.69	153.69	542.24	580.34	621.11	664.74	711.44
Total Cash (%)
Account Receivables	3,641.14	3,168.37	2,928.39	3,576.13	4,301	4,577.40	4,898.99	5,243.17	5,611.53	6,005.77
Account Receivables (%)
Inventories	3,141.82	3,008.42	2,731.99	3,236.84	4,244.15	4,237.77	4,535.49	4,854.13	5,195.16	5,560.15
Inventories (%)
Accounts Payable	2,269.48	1,864.34	1,754.08	2,401.36	3,431.68	3,009.25	3,220.67	3,446.94	3,689.10	3,948.28
Accounts Payable (%)
Capital Expenditure	-155.87	-122.69	-73.52	-50.36	-48.90	-120.89	-129.39	-138.48	-148.21	-158.62
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 45.93
Beta	1.352
Diluted Shares Outstanding	99.82
Cost of Debt
Tax Rate	16.91
After-tax Cost of Debt	4.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.899
Total Debt	1,865.77
Total Equity	4,584.69
Total Capital	6,450.46
Debt Weighting	28.92
Equity Weighting	71.08
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	19,036.89	19,518.59	17,634.33	19,534.68	24,310.71	26,018.66	27,846.61	29,802.97	31,896.79	34,137.70
EBITDA	468.94	554.21	235.98	451.10	1,088.92	698.82	747.92	800.47	856.70	916.89
EBIT	234.07	373.37	-6.91	262.40	933.71	431.24	461.54	493.97	528.67	565.81
Tax Rate	207.82%	27.21%	75.74%	-11.67%	16.91%	63.20%	63.20%	63.20%	63.20%	63.20%
EBIAT	-252.37	271.76	-1.68	293.03	775.78	158.68	169.83	181.76	194.53	208.20
Depreciation	234.87	180.84	242.89	188.70	155.21	267.58	286.38	306.50	328.03	351.08
Accounts Receivable	-	472.77	239.98	-647.74	-724.87	-276.40	-321.59	-344.18	-368.36	-394.24
Inventories	-	133.40	276.44	-504.85	-1,007.31	6.38	-297.72	-318.64	-341.03	-364.99
Accounts Payable	-	-405.14	-110.26	647.28	1,030.33	-422.43	211.42	226.27	242.17	259.18
Capital Expenditure	-155.87	-122.69	-73.52	-50.36	-48.90	-120.89	-129.39	-138.48	-148.21	-158.62
UFCF	-173.38	530.94	573.86	-73.95	180.23	-387.08	-81.07	-86.77	-92.86	-99.39
WACC
PV UFCF						-357.31	-69.08	-68.25	-67.43	-66.62
SUM PV UFCF										-628.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.33
Free cash flow (t + 1)	-101.37
Terminal Value	-1,601.50
Present Value of Terminal Value	-1,073.45

Intrinsic Value

Enterprise Value	-1,702.15
Net Debt	1,712.08
Equity Value	-3,414.22
Shares Outstanding	99.82
Equity Value Per Share	-34.20