VIAV — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($33.05)
DCF	$29.81	-9.8%
Graham Number	—	—
Reverse DCF	—	implied g: 18.4%
DDM	—	—
EV/EBITDA	$35.35	+6.9%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $199.64M

Near-term growth (yrs 1–5)(%)Rev: 16.6% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.02%

Computed WACC: 9.02%

Cost of equity (Re)9.50%(Rf 4.30% + β 0.95 × ERP 5.50%)

Cost of debt (Rd)4.48%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)91.95%

Debt weight (D/V)8.05%

Results

Intrinsic Value / share$29.71

Current Price$33.05

Upside / Downside-10.1%

Net Debt (used)-$29.60M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	8.6%	12.6%	16.6%	20.6%	24.6%
7.0%	$31.94	$37.88	$44.70	$52.50	$61.38
8.0%	$25.75	$30.47	$35.88	$42.07	$49.10
9.0%	$21.48	$25.36	$29.81	$34.89	$40.66
10.0%	$18.37	$21.65	$25.39	$29.66	$34.52
11.0%	$16.01	$18.82	$22.03	$25.70	$29.85

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $-0.19

Book Value / share($)Yahoo: $3.60

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$33.05

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.02%

Terminal growth rate(%)

Computed WACC: 9.02%

Cost of equity (Re)9.50%(Rf 4.30% + β 0.95 × ERP 5.50%)

Cost of debt (Rd)4.48%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)91.95%

Debt weight (D/V)8.05%

Results

Current Price$33.05

Implied Near-term FCF Growth18.5%

Historical Revenue Growth16.6%

Historical Earnings Growth—

Base FCF (TTM)$199.64M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$33.05

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $179.10M

Target EV/EBITDA multipleCurrent: 45.5×

Net Debt($B)Default: -$29.60M

Results

Implied Equity Value / share$35.35

Current Price$33.05

Upside / Downside+6.9%

Implied EV$8.15B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$2.03B	-$1.03B	-$29.60M	$970.40M	$1.97B
41.5x	$40.90	$36.58	$32.25	$27.93	$23.61
43.5x	$42.45	$38.12	$33.80	$29.48	$25.16
45.5x	$43.99	$39.67	$35.35	$31.03	$26.71
47.5x	$45.54	$41.22	$36.90	$32.58	$28.25
49.5x	$47.09	$42.77	$38.45	$34.12	$29.80

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