ACGL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($101.06)
DCF	$-5510.50	-5552.7%
Graham Number	$130.62	+29.3%
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	$101.17	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$17.00B

Near-term growth (yrs 1–5)(%)Rev: 8.5% / EPS: 38.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.22%

Computed WACC: 6.22%

Cost of equity (Re)6.40%(Rf 4.30% + β 0.38 × ERP 5.50%)

Cost of debt (Rd)5.13%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.70%

Debt weight (D/V)7.30%

Results

Intrinsic Value / share$-10786.50

Current Price$101.06

Upside / Downside-10773.4%

Net Debt (used)-$797.00M

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

WACC \ Near-term	30.8%	34.8%	38.8%	42.8%	46.8%
7.0%	$-6452.03	$-7476.88	$-8629.24	$-9920.72	$-11363.62
8.0%	$-5074.58	$-5876.02	$-6776.87	$-7786.15	$-8913.44
9.0%	$-4132.66	$-4781.48	$-5510.50	$-6327.02	$-7238.73
10.0%	$-3451.24	$-3989.76	$-4594.63	$-5271.86	$-6027.80
11.0%	$-2937.72	$-3393.22	$-3904.64	$-4477.04	$-5115.77

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $11.60

Book Value / share($)Yahoo: $65.37

Results

Graham Number$130.62

Current Price$101.06

Margin of Safety+29.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.22%

Terminal growth rate(%)

Computed WACC: 6.22%

Cost of equity (Re)6.40%(Rf 4.30% + β 0.38 × ERP 5.50%)

Cost of debt (Rd)5.13%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.70%

Debt weight (D/V)7.30%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$101.06

Implied Near-term FCF Growth—

Historical Revenue Growth8.5%

Historical Earnings Growth38.8%

Base FCF (TTM)-$17.00B

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$101.06

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.52B

Target EV/EBITDA multipleCurrent: 6.4×

Net Debt($B)Default: -$797.00M

Results

Implied Equity Value / share$101.17

Current Price$101.06

Upside / Downside+0.1%

Implied EV$35.52B

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

Mult \ Net Debt	-$2.80B	-$1.80B	-$797.00M	$203.00M	$1.20B
2.4x	$45.21	$42.42	$39.63	$36.85	$34.06
4.4x	$75.97	$73.19	$70.40	$67.62	$64.83
6.4x	$106.74	$103.96	$101.17	$98.39	$95.60
8.4x	$137.51	$134.73	$131.94	$129.16	$126.37
10.4x	$168.28	$165.50	$162.71	$159.92	$157.14

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