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%.
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% |
(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% |