AEE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($112.90)
DCF	$-289.85	-356.7%
Graham Number	$76.40	-32.3%
Reverse DCF	—	—
DDM	$61.80	-45.3%
EV/EBITDA	$113.36	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$1.48B

Near-term growth (yrs 1–5)(%)Rev: -8.8% / EPS: 19.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.69%

Computed WACC: 5.69%

Cost of equity (Re)7.22%(Rf 4.30% + β 0.53 × ERP 5.50%)

Cost of debt (Rd)4.17%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)61.06%

Debt weight (D/V)38.94%

Results

Intrinsic Value / share$-552.92

Current Price$112.90

Upside / Downside-589.7%

Net Debt (used)$19.89B

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

WACC \ Near-term	11.5%	15.5%	19.5%	23.5%	27.5%
7.0%	$-309.08	$-352.45	$-402.09	$-458.67	$-522.90
8.0%	$-262.13	$-296.49	$-335.80	$-380.56	$-431.35
9.0%	$-229.84	$-258.02	$-290.23	$-326.89	$-368.45
10.0%	$-206.33	$-230.02	$-257.07	$-287.84	$-322.71
11.0%	$-188.49	$-208.78	$-231.93	$-258.25	$-288.05

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.35

Book Value / share($)Yahoo: $48.48

Results

Graham Number$76.40

Current Price$112.90

Margin of Safety-32.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.69%

Terminal growth rate(%)

Computed WACC: 5.69%

Cost of equity (Re)7.22%(Rf 4.30% + β 0.53 × ERP 5.50%)

Cost of debt (Rd)4.17%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)61.06%

Debt weight (D/V)38.94%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$112.90

Implied Near-term FCF Growth—

Historical Revenue Growth-8.8%

Historical Earnings Growth19.5%

Base FCF (TTM)-$1.48B

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: $3.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$61.80

Current Price$112.90

Upside / Downside-45.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.72B

Target EV/EBITDA multipleCurrent: 13.8×

Net Debt($B)Default: $19.89B

Results

Implied Equity Value / share$113.36

Current Price$112.90

Upside / Downside+0.4%

Implied EV$51.23B

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

Mult \ Net Debt	$9.89B	$14.89B	$19.89B	$24.89B	$29.89B
9.8x	$95.72	$77.64	$59.55	$41.46	$23.37
11.8x	$122.63	$104.54	$86.45	$68.37	$50.28
13.8x	$149.54	$131.45	$113.36	$95.27	$77.19
15.8x	$176.45	$158.36	$140.27	$122.18	$104.09
17.8x	$203.35	$185.27	$167.18	$149.09	$131.00

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