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 Rate	8.3% - 10.9%	9.6%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	8.01 - 18.12	10.98
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

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	679	614	741	825	899	967
% Growth	12%	-10%	21%	11%	9%	7%

Cost of goods sold	(312)	(268)	(308)	(326)	(337)	(344)
% of Revenue	46%	44%	42%	39%	37%	36%

Selling, G&A expenses	(153)	(138)	(167)	(186)	(203)	(218)
% of Revenue	23%	23%	23%	23%	23%	23%

Research & Development	(121)	(109)	(132)	(147)	(160)	(172)
% of Revenue	18%	18%	18%	18%	18%	18%

Net interest & other expenses	(34)	(31)	(38)	(42)	(46)	(49)
% of Revenue	5%	5%	5%	5%	5%	5%

Tax expense	(19)	(24)	(35)	(46)	(56)	(67)
Tax rate	32%	37%	37%	37%	37%	37%

Net profit	39	42	61	79	97	116
% Margin	6%	7%	8%	10%	11%	12%