ACI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($17.70)
DCF	$13.06	-26.2%
Graham Number	$12.99	-26.6%
Reverse DCF	—	implied g: 6.8%
DDM	$12.36	-30.2%
EV/EBITDA	$17.70	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.25B

Near-term growth (yrs 1–5)(%)Rev: 1.9% / EPS: -20.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.79%

Computed WACC: 4.79%

Cost of equity (Re)5.70%(Rf 4.30% + β 0.25 × ERP 5.50%)

Cost of debt (Rd)5.34%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)38.65%

Debt weight (D/V)61.35%

Results

Intrinsic Value / share$92.52

Current Price$17.70

Upside / Downside+422.7%

Net Debt (used)$15.22B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$13.43	$22.13	$32.26	$43.98	$57.48
8.0%	$5.77	$12.77	$20.91	$30.32	$41.15
9.0%	$0.46	$6.29	$13.06	$20.87	$29.85
10.0%	$-3.44	$1.54	$7.31	$13.95	$21.58
11.0%	$-6.42	$-2.10	$2.91	$8.66	$15.26

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.54

Book Value / share($)Yahoo: $4.87

Results

Graham Number$12.99

Current Price$17.70

Margin of Safety-26.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.79%

Terminal growth rate(%)

Computed WACC: 4.79%

Cost of equity (Re)5.70%(Rf 4.30% + β 0.25 × ERP 5.50%)

Cost of debt (Rd)5.34%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)38.65%

Debt weight (D/V)61.35%

Results

Current Price$17.70

Implied Near-term FCF Growth-8.8%

Historical Revenue Growth1.9%

Historical Earnings Growth-20.3%

Base FCF (TTM)$1.25B

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: $0.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$12.36

Current Price$17.70

Upside / Downside-30.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.61B

Target EV/EBITDA multipleCurrent: 6.7×

Net Debt($B)Default: $15.22B

Results

Implied Equity Value / share$17.70

Current Price$17.70

Upside / Downside+0.0%

Implied EV$24.32B

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

Mult \ Net Debt	$7.22B	$11.22B	$15.22B	$19.22B	$23.22B
2.7x	$5.18	$-2.60	$-10.39	$-18.17	$-25.95
4.7x	$19.22	$11.44	$3.66	$-4.13	$-11.91
6.7x	$33.27	$25.48	$17.70	$9.92	$2.13
8.7x	$47.31	$39.53	$31.75	$23.96	$16.18
10.7x	$61.36	$53.57	$45.79	$38.01	$30.22

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