AFRM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($50.72)
DCF	$484.06	+854.4%
Graham Number	$13.95	-72.5%
Reverse DCF	—	implied g: 22.9%
DDM	—	—
EV/EBITDA	$57.78	+13.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $457.45M

Near-term growth (yrs 1–5)(%)Rev: 29.6% / EPS: 59.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 18.57%

Computed WACC: 18.57%

Cost of equity (Re)24.80%(Rf 4.30% + β 3.73 × ERP 5.50%)

Cost of debt (Rd)9.01%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)64.79%

Debt weight (D/V)35.21%

Results

Intrinsic Value / share$107.82

Current Price$50.72

Upside / Downside+112.6%

Net Debt (used)$7.62B

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

WACC \ Near-term	51.3%	55.3%	59.3%	63.3%	67.3%
7.0%	$605.41	$692.45	$788.88	$895.44	$1012.90
8.0%	$464.84	$532.31	$607.05	$689.62	$780.64
9.0%	$369.07	$423.22	$483.18	$549.43	$622.44
10.0%	$300.07	$344.62	$393.95	$448.44	$508.48
11.0%	$248.31	$285.66	$327.02	$372.69	$423.01

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.81

Book Value / share($)Yahoo: $10.68

Results

Graham Number$13.95

Current Price$50.72

Margin of Safety-72.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 18.57%

Terminal growth rate(%)

Computed WACC: 18.57%

Cost of equity (Re)24.80%(Rf 4.30% + β 3.73 × ERP 5.50%)

Cost of debt (Rd)9.01%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)64.79%

Debt weight (D/V)35.21%

Results

Current Price$50.72

Implied Near-term FCF Growth46.8%

Historical Revenue Growth29.6%

Historical Earnings Growth59.3%

Base FCF (TTM)$457.45M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$50.72

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $527.05M

Target EV/EBITDA multipleCurrent: 46.5×

Net Debt($B)Default: $7.62B

Results

Implied Equity Value / share$57.78

Current Price$50.72

Upside / Downside+13.9%

Implied EV$24.51B

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

Mult \ Net Debt	$3.62B	$5.62B	$7.62B	$9.62B	$11.62B
42.5x	$64.25	$57.41	$50.57	$43.73	$36.89
44.5x	$67.85	$61.01	$54.17	$47.33	$40.49
46.5x	$71.46	$64.62	$57.78	$50.94	$44.10
48.5x	$75.06	$68.22	$61.38	$54.54	$47.70
50.5x	$78.67	$71.83	$64.99	$58.15	$51.31

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