ACN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($205.61)
DCF	$338.83	+64.8%
Graham Number	$116.91	-43.1%
Reverse DCF	—	implied g: -2.6%
DDM	$134.31	-34.7%
EV/EBITDA	$210.39	+2.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $11.12B

Near-term growth (yrs 1–5)(%)Rev: 6.0% / EPS: -1.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.85%

Computed WACC: 10.85%

Cost of equity (Re)11.10%(Rf 4.30% + β 1.24 × ERP 5.50%)

Cost of debt (Rd)8.94%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)93.96%

Debt weight (D/V)6.04%

Results

Intrinsic Value / share$262.68

Current Price$205.61

Upside / Downside+27.8%

Net Debt (used)-$1.45B

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

WACC \ Near-term	-2.0%	2.0%	6.0%	10.0%	14.0%
7.0%	$343.64	$412.22	$491.90	$584.02	$690.01
8.0%	$282.33	$337.46	$401.42	$475.26	$560.13
9.0%	$239.87	$285.72	$338.83	$400.08	$470.39
10.0%	$208.73	$247.79	$292.98	$345.03	$404.72
11.0%	$184.90	$218.80	$257.96	$303.01	$354.61

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $12.11

Book Value / share($)Yahoo: $50.16

Results

Graham Number$116.91

Current Price$205.61

Margin of Safety-43.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.85%

Terminal growth rate(%)

Computed WACC: 10.85%

Cost of equity (Re)11.10%(Rf 4.30% + β 1.24 × ERP 5.50%)

Cost of debt (Rd)8.94%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)93.96%

Debt weight (D/V)6.04%

Results

Current Price$205.61

Implied Near-term FCF Growth1.6%

Historical Revenue Growth6.0%

Historical Earnings Growth-1.6%

Base FCF (TTM)$11.12B

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: $6.52

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$134.31

Current Price$205.61

Upside / Downside-34.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $12.46B

Target EV/EBITDA multipleCurrent: 10.3×

Net Debt($B)Default: -$1.45B

Results

Implied Equity Value / share$210.39

Current Price$205.61

Upside / Downside+2.3%

Implied EV$128.03B

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

Mult \ Net Debt	-$1.45B	-$1.45B	-$1.45B	-$1.45B	-$1.45B
6.3x	$129.42	$129.42	$129.42	$129.42	$129.42
8.3x	$169.91	$169.91	$169.91	$169.91	$169.91
10.3x	$210.39	$210.39	$210.39	$210.39	$210.39
12.3x	$250.88	$250.88	$250.88	$250.88	$250.88
14.3x	$291.37	$291.37	$291.37	$291.37	$291.37

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