Avaya Holdings Corporation is a leading provider of contact center, unified communications and networking products and services designed to help enterprise and mid-market businesses. The company was founded in 2007 and is based in Santa Clara, California.
AVYA 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 Avaya Holdings Corp. To summarize, we found that Avaya Holdings Corp ranked in the 9th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Avaya Holdings Corp ended up being:
The company's balance sheet shows it gets 19% of its capital from equity, and 81% of its capital from debt. Its equity weight surpasses that of only 10.35% of free cash flow generating stocks in the Industrials sector.
Its compound free cash flow growth rate, as measured over the past 4.14 years, is -0.14% -- higher than just 13.6% of stocks in our DCF forecasting set.
Avaya Holdings Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.02. This coverage rate is greater than that of just 11.62% 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
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AVYA, try CRS, INSW, QMCI, CECE, and CPRT.