Avnet, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $500M normalized FCF base (avg of FY2024 $463.5M and FY2025 $577.0M, excluding an anomalous FY2026 working-capital-driven negative FCF quarter); 4% annual FCF growth years 1-5; 3% growth years 6-10; 9% discount rate; 2.5% terminal growth; $3.32B net debt; 82.07 million shares outstanding.

Reasoning: Avnet is a large, mature, low-margin global electronics distributor whose cash flow is highly sensitive to working-capital swings tied to the semiconductor/electronics cycle; a normalized multi-year FCF base (rather than the current cyclically-depressed figure) with modest growth better reflects sustainable earning power, and the meaningful net debt load is subtracted given the distribution business's working-capital-financed balance sheet.