AFL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($111.99)
DCF	$165.61	+47.9%
Graham Number	$93.40	-16.6%
Reverse DCF	—	implied g: -1.2%
DDM	$50.26	-55.1%
EV/EBITDA	$112.85	+0.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.18B

Near-term growth (yrs 1–5)(%)Rev: -9.9% / EPS: -22.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.72%

Computed WACC: 6.72%

Cost of equity (Re)7.88%(Rf 4.30% + β 0.65 × ERP 5.50%)

Cost of debt (Rd)1.72%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)82.34%

Debt weight (D/V)17.66%

Results

Intrinsic Value / share$261.40

Current Price$111.99

Upside / Downside+133.4%

Net Debt (used)$4.95B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$167.12	$202.84	$244.41	$292.51	$347.92
8.0%	$135.68	$164.44	$197.84	$236.45	$280.86
9.0%	$113.90	$137.84	$165.61	$197.67	$234.50
10.0%	$97.90	$118.33	$141.99	$169.26	$200.56
11.0%	$85.66	$103.41	$123.93	$147.56	$174.65

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.82

Book Value / share($)Yahoo: $56.85

Results

Graham Number$93.40

Current Price$111.99

Margin of Safety-16.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.72%

Terminal growth rate(%)

Computed WACC: 6.72%

Cost of equity (Re)7.88%(Rf 4.30% + β 0.65 × ERP 5.50%)

Cost of debt (Rd)1.72%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)82.34%

Debt weight (D/V)17.66%

Results

Current Price$111.99

Implied Near-term FCF Growth-7.6%

Historical Revenue Growth-9.9%

Historical Earnings Growth-22.9%

Base FCF (TTM)$5.18B

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: $2.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$50.26

Current Price$111.99

Upside / Downside-55.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.79B

Target EV/EBITDA multipleCurrent: 13.3×

Net Debt($B)Default: $4.95B

Results

Implied Equity Value / share$112.85

Current Price$111.99

Upside / Downside+0.8%

Implied EV$63.49B

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

Mult \ Net Debt	$2.95B	$3.95B	$4.95B	$5.95B	$6.95B
9.3x	$79.77	$77.84	$75.92	$73.99	$72.06
11.3x	$98.24	$96.31	$94.38	$92.45	$90.53
13.3x	$116.70	$114.78	$112.85	$110.92	$108.99
15.3x	$135.17	$133.24	$131.31	$129.39	$127.46
17.3x	$153.63	$151.71	$149.78	$147.85	$145.92

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