ALB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($178.18)
DCF	$112.70	-36.8%
Graham Number	—	—
Reverse DCF	—	implied g: 23.2%
DDM	$33.37	-81.3%
EV/EBITDA	$199.74	+12.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $453.29M

Near-term growth (yrs 1–5)(%)Rev: 15.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.26%

Computed WACC: 11.26%

Cost of equity (Re)12.27%(Rf 4.30% + β 1.45 × ERP 5.50%)

Cost of debt (Rd)6.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.34%

Debt weight (D/V)13.66%

Results

Intrinsic Value / share$76.50

Current Price$178.18

Upside / Downside-57.1%

Net Debt (used)$1.70B

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

WACC \ Near-term	7.9%	11.9%	15.9%	19.9%	23.9%
7.0%	$121.60	$147.14	$176.49	$210.06	$248.30
8.0%	$95.22	$115.52	$138.83	$165.48	$195.80
9.0%	$77.05	$93.75	$112.91	$134.79	$159.68
10.0%	$63.79	$77.88	$94.02	$112.44	$133.38
11.0%	$53.72	$65.82	$79.68	$95.48	$113.42

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-5.75

Book Value / share($)Yahoo: $62.00

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$178.18

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.26%

Terminal growth rate(%)

Computed WACC: 11.26%

Cost of equity (Re)12.27%(Rf 4.30% + β 1.45 × ERP 5.50%)

Cost of debt (Rd)6.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.34%

Debt weight (D/V)13.66%

Results

Current Price$178.18

Implied Near-term FCF Growth29.9%

Historical Revenue Growth15.9%

Historical Earnings Growth—

Base FCF (TTM)$453.29M

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: $1.62

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$33.37

Current Price$178.18

Upside / Downside-81.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $737.78M

Target EV/EBITDA multipleCurrent: 34.2×

Net Debt($B)Default: $1.70B

Results

Implied Equity Value / share$199.74

Current Price$178.18

Upside / Downside+12.1%

Implied EV$25.24B

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

Mult \ Net Debt	$1.70B	$1.70B	$1.70B	$1.70B	$1.70B
30.2x	$174.70	$174.70	$174.70	$174.70	$174.70
32.2x	$187.22	$187.22	$187.22	$187.22	$187.22
34.2x	$199.74	$199.74	$199.74	$199.74	$199.74
36.2x	$212.26	$212.26	$212.26	$212.26	$212.26
38.2x	$224.78	$224.78	$224.78	$224.78	$224.78

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