What is AVT.PA's DCF valuation?

Avenir Telecom SA (AVT.PA) DCF Valuation Analysis

Executive Summary

As of December 15, 2025, Avenir Telecom SA has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.03, this represents a potential upside of -10997.3%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -12366.0%
Potential Upside (10-year) -10997.3%
Discount Rate (WACC) 4.5% - 5.7%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $11 million in 03-2025 to $16 million by 03-2035, representing a compound annual growth rate of approximately 3.8%.

Fiscal Year Revenue (USD millions) Growth
03-2025 11 22%
03-2026 12 6%
03-2027 12 2%
03-2028 12 3%
03-2029 12 2%
03-2030 13 6%
03-2031 14 3%
03-2032 14 3%
03-2033 14 2%
03-2034 15 6%
03-2035 16 4%

Profitability Projections

Net profit margin is expected to improve from -79% in 03-2025 to -37% by 03-2035, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
03-2025 (9) -79%
03-2026 (6) -54%
03-2027 (6) -50%
03-2028 (6) -47%
03-2029 (5) -43%
03-2030 (5) -40%
03-2031 (5) -40%
03-2032 (5) -39%
03-2033 (5) -38%
03-2034 (6) -38%
03-2035 (6) -37%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
03-2026 0
03-2027 0
03-2028 0
03-2029 0
03-2030 0
03-2031 0

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 7
Days Inventory 108
Days Payables 37

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
2026 (8) (2) 0 1 (7)
2027 (8) (2) 0 (0) (6)
2028 (8) (2) 0 (0) (5)
2029 (7) (2) 0 0 (5)
2030 (7) (2) 0 (0) (5)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 4.5% - 5.7%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 4.3%)
  • Terminal EV/EBITDA Multiple: 4.4x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -12366.0%
10-Year DCF (Growth) 0.00 -10997.3%
5-Year DCF (EBITDA) 0.00 -100.0%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(310)M
  • 10-Year Model: $(277)M

Investment Conclusion

Is Avenir Telecom SA (AVT.PA) a buy or a sell? Avenir Telecom SA is definitely a sell. Based on our DCF analysis, Avenir Telecom SA (AVT.PA) appears to be overvalued with upside potential of -10997.3%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.

Key investment drivers include:

  • Expanding profit margins (from -79% to -37%)
  • Steady revenue growth (3.8% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $0.03.