AAMI — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($53.78)
DCF	$55.19	+2.6%
Graham Number	$9.19	-82.9%
Reverse DCF	—	implied g: 4.6%
DDM	$8.24	-84.7%
EV/EBITDA	$55.63	+3.4%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $121.38M

Near-term growth (yrs 1–5)(%)Rev: 2.6% / EPS: -14.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.11%

Computed WACC: 10.11%

Cost of equity (Re)11.48%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)88.05%

Debt weight (D/V)11.95%

Results

Intrinsic Value / share$46.38

Current Price$53.78

Upside / Downside-13.8%

Net Debt (used)$160.20M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$55.70	$67.87	$82.03	$98.42	$117.29
8.0%	$44.99	$54.79	$66.17	$79.32	$94.45
9.0%	$37.57	$45.73	$55.19	$66.11	$78.66
10.0%	$32.12	$39.08	$47.14	$56.43	$67.09
11.0%	$27.95	$34.00	$40.99	$49.04	$58.27

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.21

Book Value / share($)Yahoo: $1.70

Results

Graham Number$9.19

Current Price$53.78

Margin of Safety-82.9%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.11%

Terminal growth rate(%)

Computed WACC: 10.11%

Cost of equity (Re)11.48%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)88.05%

Debt weight (D/V)11.95%

Results

Current Price$53.78

Implied Near-term FCF Growth7.4%

Historical Revenue Growth2.6%

Historical Earnings Growth-14.8%

Base FCF (TTM)$121.38M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$8.24

Current Price$53.78

Upside / Downside-84.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $147.70M

Target EV/EBITDA multipleCurrent: 14.5×

Net Debt($B)Default: $160.20M

Results

Implied Equity Value / share$55.63

Current Price$53.78

Upside / Downside+3.4%

Implied EV$2.15B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.84B	-$839.80M	$160.20M	$1.16B	$2.16B
10.5x	$95.09	$67.08	$39.08	$11.08	$-16.93
12.5x	$103.36	$75.36	$47.35	$19.35	$-8.66
14.5x	$111.63	$83.63	$55.63	$27.62	$-0.38
16.5x	$119.91	$91.90	$63.90	$35.89	$7.89
18.5x	$128.18	$100.17	$72.17	$44.17	$16.16

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