ADP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($214.36)
DCF	$215.22	+0.4%
Graham Number	$60.99	-71.5%
Reverse DCF	—	implied g: 11.4%
DDM	$140.08	-34.7%
EV/EBITDA	$214.36	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $3.46B

Near-term growth (yrs 1–5)(%)Rev: 6.2% / EPS: 11.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.03%

Computed WACC: 9.03%

Cost of equity (Re)8.96%(Rf 4.30% + β 0.85 × ERP 5.50%)

Cost of debt (Rd)13.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.09%

Debt weight (D/V)4.91%

Results

Intrinsic Value / share$214.50

Current Price$214.36

Upside / Downside+0.1%

Net Debt (used)$2.05B

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

WACC \ Near-term	3.5%	7.5%	11.5%	15.5%	19.5%
7.0%	$225.52	$270.18	$321.75	$381.01	$448.81
8.0%	$182.12	$217.79	$258.92	$306.15	$360.12
9.0%	$152.16	$181.64	$215.59	$254.53	$299.00
10.0%	$130.26	$155.22	$183.95	$216.86	$254.41
11.0%	$113.57	$135.11	$159.86	$188.19	$220.49

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.42

Book Value / share($)Yahoo: $15.86

Results

Graham Number$60.99

Current Price$214.36

Margin of Safety-71.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.03%

Terminal growth rate(%)

Computed WACC: 9.03%

Cost of equity (Re)8.96%(Rf 4.30% + β 0.85 × ERP 5.50%)

Cost of debt (Rd)13.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.09%

Debt weight (D/V)4.91%

Results

Current Price$214.36

Implied Near-term FCF Growth11.5%

Historical Revenue Growth6.2%

Historical Earnings Growth11.5%

Base FCF (TTM)$3.46B

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: $6.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$140.08

Current Price$214.36

Upside / Downside-34.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.19B

Target EV/EBITDA multipleCurrent: 14.3×

Net Debt($B)Default: $2.05B

Results

Implied Equity Value / share$214.36

Current Price$214.36

Upside / Downside+0.0%

Implied EV$88.37B

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

Mult \ Net Debt	$53.20M	$1.05B	$2.05B	$3.05B	$4.05B
10.3x	$157.85	$155.37	$152.89	$150.40	$147.92
12.3x	$188.59	$186.11	$183.62	$181.14	$178.66
14.3x	$219.33	$216.85	$214.36	$211.88	$209.40
16.3x	$250.07	$247.59	$245.10	$242.62	$240.14
18.3x	$280.81	$278.33	$275.84	$273.36	$270.88

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