HLIT
Harmonic Inc
Price:  
9.3 
USD
Volume:  
1,666,085
United States | Communications Equipment

HLIT DCF Valuation - Growth Exit 5Y

18.1 %
Upside

What is the DCF valuation of HLIT?

The Discounted Cash Flow (DCF) valuation of Harmonic Inc (HLIT) is 10.98 USD. With the latest stock price at 9.30 USD, the upside of Harmonic Inc based on DCF is 18.1%.

Is HLIT a buy or a sell?

Based on the latest price of 9.30 USD and our DCF valuation, Harmonic Inc (HLIT) is a buy. Buying HLIT stocks now will result in a potential gain of 18.1%.

Range Selected
WACC / Discount Rate8.3% - 10.9%9.6%
Long-term Growth Rate 3.0% - 5.0%4.0%
Fair Price8.01 - 18.1210.98
Upside-13.9% - 94.8%18.1%
9.30 USD
Stock Price
10.98 USD
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

HLIT DCF Valuation: Revenue & Expenses Forecast

(USD in millions)Projections
12-202412-202512-202612-202712-202812-2029
Revenue679614741825899967
% Growth
12%-10%21%11%9%7%
Cost of goods sold(312)(268)(308)(326)(337)(344)
% of Revenue46%44%42%39%37%36%
Selling, G&A expenses(153)(138)(167)(186)(203)(218)
% of Revenue23%23%23%23%23%23%
Research & Development(121)(109)(132)(147)(160)(172)
% of Revenue18%18%18%18%18%18%
Net interest & other expenses(34)(31)(38)(42)(46)(49)
% of Revenue5%5%5%5%5%5%
Tax expense(19)(24)(35)(46)(56)(67)
Tax rate32%37%37%37%37%37%
Net profit3942617997116
% Margin6%7%8%10%11%12%