AIT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($283.54)
DCF	$211.24	-25.5%
Graham Number	$108.78	-61.6%
Reverse DCF	—	implied g: 13.4%
DDM	$42.02	-85.2%
EV/EBITDA	$283.54	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $375.58M

Near-term growth (yrs 1–5)(%)Rev: 8.4% / EPS: 5.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.40%

Computed WACC: 8.40%

Cost of equity (Re)8.71%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)3.18%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)94.92%

Debt weight (D/V)5.08%

Results

Intrinsic Value / share$234.22

Current Price$283.54

Upside / Downside-17.4%

Net Debt (used)$166.31M

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

WACC \ Near-term	0.4%	4.4%	8.4%	12.4%	16.4%
7.0%	$217.24	$261.08	$311.89	$370.47	$437.70
8.0%	$176.55	$211.69	$252.36	$299.19	$352.89
9.0%	$148.41	$177.56	$211.24	$249.98	$294.35
10.0%	$127.81	$152.57	$181.15	$214.00	$251.58
11.0%	$112.07	$133.50	$158.21	$186.57	$218.98

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.49

Book Value / share($)Yahoo: $50.14

Results

Graham Number$108.78

Current Price$283.54

Margin of Safety-61.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.40%

Terminal growth rate(%)

Computed WACC: 8.40%

Cost of equity (Re)8.71%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)3.18%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)94.92%

Debt weight (D/V)5.08%

Results

Current Price$283.54

Implied Near-term FCF Growth11.6%

Historical Revenue Growth8.4%

Historical Earnings Growth5.0%

Base FCF (TTM)$375.58M

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: $2.04

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$42.02

Current Price$283.54

Upside / Downside-85.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $585.08M

Target EV/EBITDA multipleCurrent: 18.4×

Net Debt($B)Default: $166.31M

Results

Implied Equity Value / share$283.54

Current Price$283.54

Upside / Downside+0.0%

Implied EV$10.74B

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

Mult \ Net Debt	-$1.83B	-$833.69M	$166.31M	$1.17B	$2.17B
14.4x	$274.42	$247.61	$220.80	$194.00	$167.19
16.4x	$305.79	$278.98	$252.17	$225.37	$198.56
18.4x	$337.16	$310.35	$283.54	$256.74	$229.93
20.4x	$368.53	$341.72	$314.91	$288.11	$261.30
22.4x	$399.90	$373.09	$346.28	$319.47	$292.67

← Overview Financial Statements ← Companies