Avnet Inc. distributes electronic components, enterprise computer and storage products, IT solutions and services, and embedded subsystems in the Americas, Europe, the Middle East, Africa, and the Asia/Pacific. The company was founded in 1955 and is based in Phoenix, Arizona.
AVT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Avnet Inc. To summarize, we found that Avnet Inc ranked in the 49th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for AVT, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 63. Notably, its equity weight is greater than only 10.9% of US equities in the Technology sector yielding a positive free cash flow.
Avnet Inc's effective tax rate, as measured by taxes paid relative to net income, is at 56 -- greater than 94.85% of US stocks with positive free cash flow.
Avnet Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.68. This coverage rate is greater than that of just 21.85% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Avnet Inc? See CPSI, DXC, INTC, CLRO, and DAVA.
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Avnet, Inc. (AVT) Q4 2020 Earnings Conference Call August 6, 2020 4:30 PM ET Company Participants Joe Burke – Vice President, Treasurer and Investor Relations Phil Gallagher – interim Chief Executive Officer Tom Liguori – Chief Financial Officer Conference Call Participants Adam Tindle – Raymond James Matt Sheerin – Stifel...