Viavi Solutions Inc. (VIAV) DCF Valuation
Why we don't show a single “fair value” for VIAV
Even the optimistic scenario of a conservative trailing-FCF model ($5.33) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. Off today's cash-flow base, no plausible growth rate bridges to the current price — the market is valuing normalized future cash flows, not the depressed base. The model scenarios below are shown for reference only.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 1.1%/yr | 11.0% | $2.82 |
| Base case | 4.1%/yr | 10.0% | $3.86 |
| Optimistic | 7.1%/yr | 9.0% | $5.33 |
Current Price
$52.94
Market-Implied Growth
—
Base-Case Model Value
$3.86
model output — not a price target
VIAV DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for VIAV (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $80.0M · 0.25B shares · net debt $218.9M
Estimated Fair Value
$4.12
-92.2% vs $52.94
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 4.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $52.94; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $5.31 | $5.63 | $6.00 | $6.44 | $6.98 |
| 9.0% | $4.45 | $4.66 | $4.91 | $5.20 | $5.54 |
| 10.0% | $3.79 | $3.94 | $4.12 | $4.31 | $4.54 |
| 11.0% | $3.27 | $3.38 | $3.51 | $3.65 | $3.81 |
| 12.0% | $2.86 | $2.94 | $3.03 | $3.13 | $3.25 |
About Viavi Solutions Inc.
Viavi Solutions Inc. offers a comprehensive suite of solutions for network testing, monitoring, and assurance to a global customer base. These clients include telecommunication service providers, businesses, manufacturers of network equipment, original equipment manufacturers, governmental organizations, and the aviation industry. The company's operations are divided into three core segments: 1. Network Enablement (NE): This division focuses on providing tools for the construction and upkeep of network infrastructure. It supplies instruments, software, and associated services crucial for the design, deployment, activation, certification, troubleshooting, and optimization of networks. This also encompasses specialized instrumentation for communication and safety. Additionally, the segment delivers professional support, including repair, calibration, software assistance, technical help, comprehensive system integration projects (with project management, installation, and implementation), and various training and consulting services. 2. Service Enablement (SE): This segment empowers communication service providers, enterprises, and cloud operators with embedded systems and enterprise performance management solutions. These offerings grant critical visibility into network, service, and application data. Utilizing instruments, microprobes, and software, Viavi monitors, collects, and analyzes network data to reveal the true customer experience and identify potential new revenue streams and avenues for network optimization. 3. Optical Security and Performance Products (OSP): This segment develops and supplies advanced optical products catering to diverse markets such as anti-counterfeiting, consumer and industrial goods, government applications, and the automotive sector. Founded in 1923, Viavi Solutions Inc. was previously known as JDS Uniphase Corporation until it adopted its current name in August 2015. The company's headquarters are located in Scottsdale, Arizona.
- Sector
- Technology
- Industry
- Communication Equipment
- CEO
- Oleg Khaykin