AIZ — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($233.55)
DCF	$1388.47	+494.5%
Graham Number	$211.94	-9.3%
Reverse DCF	—	implied g: -15.3%
DDM	$69.22	-70.4%
EV/EBITDA	$233.54	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.19B

Near-term growth (yrs 1–5)(%)Rev: 7.9% / EPS: 15.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.86%

Computed WACC: 6.86%

Cost of equity (Re)7.46%(Rf 4.30% + β 0.57 × ERP 5.50%)

Cost of debt (Rd)4.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.68%

Debt weight (D/V)16.32%

Results

Intrinsic Value / share$2145.71

Current Price$233.55

Upside / Downside+818.7%

Net Debt (used)$67.20M

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

WACC \ Near-term	7.1%	11.1%	15.1%	19.1%	23.1%
7.0%	$1474.62	$1753.22	$2073.62	$2440.41	$2858.54
8.0%	$1190.08	$1411.77	$1666.47	$1957.81	$2289.67
9.0%	$994.00	$1176.56	$1386.11	$1625.59	$1898.17
10.0%	$850.92	$1005.02	$1181.71	$1383.48	$1612.95
11.0%	$742.10	$874.60	$1026.40	$1199.57	$1396.38

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $16.93

Book Value / share($)Yahoo: $117.92

Results

Graham Number$211.94

Current Price$233.55

Margin of Safety-9.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.86%

Terminal growth rate(%)

Computed WACC: 6.86%

Cost of equity (Re)7.46%(Rf 4.30% + β 0.57 × ERP 5.50%)

Cost of debt (Rd)4.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.68%

Debt weight (D/V)16.32%

Results

Current Price$233.55

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth7.9%

Historical Earnings Growth15.1%

Base FCF (TTM)$2.19B

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: $3.36

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$69.22

Current Price$233.55

Upside / Downside-70.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.48B

Target EV/EBITDA multipleCurrent: 7.9×

Net Debt($B)Default: $67.20M

Results

Implied Equity Value / share$233.54

Current Price$233.55

Upside / Downside-0.0%

Implied EV$11.67B

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

Mult \ Net Debt	-$1.93B	-$932.80M	$67.20M	$1.07B	$2.07B
3.9x	$155.02	$134.90	$114.77	$94.65	$74.53
5.9x	$214.40	$194.28	$174.16	$154.04	$133.92
7.9x	$273.79	$253.66	$233.54	$213.42	$193.30
9.9x	$333.17	$313.05	$292.93	$272.81	$252.69
11.9x	$392.55	$372.43	$352.31	$332.19	$312.07

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