AEP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($133.29)
DCF	$-360.12	-370.2%
Graham Number	$92.88	-30.3%
Reverse DCF	—	—
DDM	$78.28	-41.3%
EV/EBITDA	$135.28	+1.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$5.14B

Near-term growth (yrs 1–5)(%)Rev: 13.2% / EPS: -13.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.57%

Computed WACC: 4.57%

Cost of equity (Re)7.73%(Rf 4.30% + β 0.62 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)59.20%

Debt weight (D/V)40.80%

Results

Intrinsic Value / share$-996.84

Current Price$133.29

Upside / Downside-847.9%

Net Debt (used)$49.28B

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

WACC \ Near-term	5.2%	9.2%	13.2%	17.2%	21.2%
7.0%	$-374.63	$-428.89	$-491.41	$-563.12	$-645.03
8.0%	$-320.64	$-363.89	$-413.68	$-470.74	$-535.86
9.0%	$-283.41	$-319.09	$-360.12	$-407.10	$-460.67
10.0%	$-256.21	$-286.38	$-321.04	$-360.68	$-405.84
11.0%	$-235.50	$-261.49	$-291.31	$-325.39	$-364.18

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.66

Book Value / share($)Yahoo: $57.57

Results

Graham Number$92.88

Current Price$133.29

Margin of Safety-30.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.57%

Terminal growth rate(%)

Computed WACC: 4.57%

Cost of equity (Re)7.73%(Rf 4.30% + β 0.62 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)59.20%

Debt weight (D/V)40.80%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$133.29

Implied Near-term FCF Growth—

Historical Revenue Growth13.2%

Historical Earnings Growth-13.4%

Base FCF (TTM)-$5.14B

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: $3.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$78.28

Current Price$133.29

Upside / Downside-41.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.96B

Target EV/EBITDA multipleCurrent: 13.7×

Net Debt($B)Default: $49.28B

Results

Implied Equity Value / share$135.28

Current Price$133.29

Upside / Downside+1.5%

Implied EV$122.44B

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

Mult \ Net Debt	$25.28B	$37.28B	$49.28B	$61.28B	$73.28B
9.7x	$113.41	$91.22	$69.04	$46.85	$24.66
11.7x	$146.53	$124.34	$102.16	$79.97	$57.78
13.7x	$179.65	$157.47	$135.28	$113.09	$90.91
15.7x	$212.77	$190.59	$168.40	$146.21	$124.03
17.7x	$245.90	$223.71	$201.52	$179.33	$157.15

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