ABM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($44.71)
DCF	$-10.70	-123.9%
Graham Number	$41.58	-7.0%
Reverse DCF	—	implied g: 31.4%
DDM	$23.90	-46.6%
EV/EBITDA	$45.92	+2.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $53.55M

Near-term growth (yrs 1–5)(%)Rev: 5.4% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.90%

Computed WACC: 4.90%

Cost of equity (Re)8.06%(Rf 4.30% + β 0.68 × 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)60.74%

Debt weight (D/V)39.26%

Results

Intrinsic Value / share$17.85

Current Price$44.71

Upside / Downside-60.1%

Net Debt (used)$1.59B

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

WACC \ Near-term	-2.6%	1.4%	5.4%	9.4%	13.4%
7.0%	$-10.52	$-7.17	$-3.27	$1.23	$6.42
8.0%	$-13.48	$-10.79	$-7.66	$-4.05	$0.11
9.0%	$-15.54	$-13.30	$-10.70	$-7.70	$-4.25
10.0%	$-17.05	$-15.13	$-12.92	$-10.37	$-7.44
11.0%	$-18.20	$-16.54	$-14.62	$-12.41	$-9.88

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.59

Book Value / share($)Yahoo: $29.67

Results

Graham Number$41.58

Current Price$44.71

Margin of Safety-7.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.90%

Terminal growth rate(%)

Computed WACC: 4.90%

Cost of equity (Re)8.06%(Rf 4.30% + β 0.68 × 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)60.74%

Debt weight (D/V)39.26%

Results

Current Price$44.71

Implied Near-term FCF Growth12.6%

Historical Revenue Growth5.4%

Historical Earnings Growth—

Base FCF (TTM)$53.55M

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: $1.16

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$23.90

Current Price$44.71

Upside / Downside-46.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $428.00M

Target EV/EBITDA multipleCurrent: 10.0×

Net Debt($B)Default: $1.59B

Results

Implied Equity Value / share$45.92

Current Price$44.71

Upside / Downside+2.7%

Implied EV$4.28B

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

Mult \ Net Debt	$1.59B	$1.59B	$1.59B	$1.59B	$1.59B
6.0x	$16.70	$16.70	$16.70	$16.70	$16.70
8.0x	$31.31	$31.31	$31.31	$31.31	$31.31
10.0x	$45.92	$45.92	$45.92	$45.92	$45.92
12.0x	$60.53	$60.53	$60.53	$60.53	$60.53
14.0x	$75.13	$75.13	$75.13	$75.13	$75.13

← Overview Financial Statements ← Companies