Avanos Medical, Inc.

AVNS

HealthcareMedical - DevicesNYSE

$24.72

Market Cap: $1.16B

Avanos Medical, Inc. (AVNS) Valuation Summary

Updated Apr 23, 2026 22:31

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$3.03 – $52.49	$18.00	-27.1%
Revenue DCF 10Y	$2.81 – $45.49	$15.87	-35.8%
▸ Trading Multiples
EV/Revenue	$23.47 – $109.65	$40.60	+64.3%

Valuation History

DCF Analysis

Avanos Medical, Inc. (AVNS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$15.87

Market Price

$24.72

Upside / Downside

-35.8%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -8.8% to a target of 13.3% over 5 years, discounted at a WACC of 8.2%, Avanos Medical, Inc. (AVNS) has an intrinsic value of $15.87 per share (range: $2.81 – $45.49).

Key Assumptions

Current Operating Margin

-8.8%

Target Operating Margin

13.3%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.1%

Target CapEx/Rev

9.3%

D&A/Revenue

6.2%

Tax Rate

16.6%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	710	1.3%	-4.4%	-31	-31	44	(26)	34	-47	-45
2027	740	4.2%	0.1%	0	0	46	(32)	10	5	4
2028	729	-1.5%	4.5%	33	27	45	(36)	-4	40	33
2029	718	-1.5%	8.9%	64	53	45	(40)	-4	61	47
2030	707	-1.5%	13.3%	94	79	44	(44)	-3	82	58
2031	702	-0.7%	13.3%	93	78	44	(48)	-2	75	49
2032	702	0.0%	13.3%	93	78	44	(52)	0	69	41
2033	708	0.8%	13.3%	94	79	44	(57)	2	64	35
2034	718	1.5%	13.3%	96	80	45	(63)	3	58	30
2035	734	2.3%	13.3%	98	82	46	(69)	5	53	25

Enterprise Value Bridge

Sum of PV(FCFF)277

Terminal Value (Gordon Growth at 3.0%)1,056

PV of Terminal Value499

Enterprise Value776

(–) Net Debt39

Equity Value736

(÷) Shares Outstanding46

Fair Value per Share$15.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.2%	$8	$17	$27	$36	$45
7.2%	$6	$13	$20	$27	$34
8.2%	$4	$10	$16	$22	$27
9.2%	$4	$8	$13	$18	$23
10.2%	$3	$7	$11	$15	$19

Current price: $24.72. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 32.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Avanos Medical, Inc. (AVNS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$18.00

Market Price

$24.72

Upside / Downside

-27.2%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-8.8%

Target Operating Margin

13.3%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.1%

Target CapEx/Rev

9.3%

D&A/Revenue

6.2%

Tax Rate

16.6%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	710	1.3%	-4.4%	-31	-31	44	(31)	34	-51	-49
2027	740	4.2%	0.1%	0	0	46	(41)	10	-5	-4
2028	729	-1.5%	4.5%	33	27	45	(50)	-4	26	22
2029	718	-1.5%	8.9%	64	53	45	(58)	-4	43	33
2030	707	-1.5%	13.3%	94	79	44	(66)	-3	60	42

Enterprise Value Bridge

Sum of PV(FCFF)43

Terminal Value (Gordon Growth at 3.0%)1,186

PV of Terminal Value831

Enterprise Value875

(–) Net Debt39

Equity Value835

(÷) Shares Outstanding46

Fair Value per Share$18.00

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.2%	$11	$22	$32	$42	$52
7.2%	$8	$15	$23	$31	$39
8.2%	$6	$12	$18	$24	$30
9.2%	$4	$9	$14	$20	$25
10.2%	$3	$7	$12	$16	$21

Current price: $24.72. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 32.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$40.60

Market Price

$24.72

Upside / Downside

+64.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Avanos Medical, Inc. (AVNS) has a fair value of $40.60 based on 9 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Avanos Medical, Inc.AVNS	1,147	1.7x	1.7x
CeriBell, Inc.CBLL	793	8.7x	12.0x
Bioventus Inc.BVS	654	1.6x	1.5x
Cytek Biosciences, Inc.CTKB	548	2.4x	2.5x
Varex Imaging CorporationVREX	514	0.9x	0.9x
4D Molecular Therapeutics, Inc.FDMT	491	5.3x	51.6x
Pacific Biosciences of California, Inc.PACB	474	7.3x	6.7x
Community Health Systems, Inc.CYH	351	0.9x	1.0x
Standard BioTools Inc.LAB	349	3.1x	1.5x
ClearPoint Neuro, Inc.CLPT	319	9.0x	11.8x
Industry Median		3.1x	2.5x
(*) Revenue		701	682
= Enterprise Value		2,147	1,699
(-) Net Debt		39	39
Equity Value		2,108	1,660
(/) Outstanding shares		46	46
Fair Price		$45	$36

Selected Fair Value (avg of trailing + forward)

$40.60

+64.3%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$3.03 – $52.49

$18.00

-27.1%

Revenue DCF 10Y

$2.81 – $45.49

$15.87

-35.8%

▸ Trading Multiples

EV/Revenue

$23.47 – $109.65

$40.60

+64.3%

DCF Analysis

Avanos Medical, Inc. (AVNS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$15.87

Market Price

$24.72

Upside / Downside

-35.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-8.8%

Target Operating Margin

13.3%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.1%

Target CapEx/Rev

9.3%

D&A/Revenue

6.2%

Tax Rate

16.6%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	710	1.3%	-4.4%	-31	-31	44	(26)	34	-47	-45
2027	740	4.2%	0.1%	0	0	46	(32)	10	5	4
2028	729	-1.5%	4.5%	33	27	45	(36)	-4	40	33
2029	718	-1.5%	8.9%	64	53	45	(40)	-4	61	47
2030	707	-1.5%	13.3%	94	79	44	(44)	-3	82	58
2031	702	-0.7%	13.3%	93	78	44	(48)	-2	75	49
2032	702	0.0%	13.3%	93	78	44	(52)	0	69	41
2033	708	0.8%	13.3%	94	79	44	(57)	2	64	35
2034	718	1.5%	13.3%	96	80	45	(63)	3	58	30
2035	734	2.3%	13.3%	98	82	46	(69)	5	53	25

Enterprise Value Bridge

Sum of PV(FCFF)277

Terminal Value (Gordon Growth at 3.0%)1,056

PV of Terminal Value499

Enterprise Value776

(–) Net Debt39

Equity Value736

(÷) Shares Outstanding46

Fair Value per Share$15.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.2%	$8	$17	$27	$36	$45
7.2%	$6	$13	$20	$27	$34
8.2%	$4	$10	$16	$22	$27
9.2%	$4	$8	$13	$18	$23
10.2%	$3	$7	$11	$15	$19

Current price: $24.72. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 32.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$40.60

Market Price

$24.72

Upside / Downside

+64.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Avanos Medical, Inc. (AVNS) has a fair value of $40.60 based on 9 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Avanos Medical, Inc.AVNS	1,147	1.7x	1.7x
CeriBell, Inc.CBLL	793	8.7x	12.0x
Bioventus Inc.BVS	654	1.6x	1.5x
Cytek Biosciences, Inc.CTKB	548	2.4x	2.5x
Varex Imaging CorporationVREX	514	0.9x	0.9x
4D Molecular Therapeutics, Inc.FDMT	491	5.3x	51.6x
Pacific Biosciences of California, Inc.PACB	474	7.3x	6.7x
Community Health Systems, Inc.CYH	351	0.9x	1.0x
Standard BioTools Inc.LAB	349	3.1x	1.5x
ClearPoint Neuro, Inc.CLPT	319	9.0x	11.8x
Industry Median		3.1x	2.5x
(*) Revenue		701	682
= Enterprise Value		2,147	1,699
(-) Net Debt		39	39
Equity Value		2,108	1,660
(/) Outstanding shares		46	46
Fair Price		$45	$36

Selected Fair Value (avg of trailing + forward)

$40.60

+64.3%