ALV — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($116.98)
DCF	$121.72	+4.1%
Graham Number	$86.01	-26.5%
Reverse DCF	—	implied g: 7.1%
DDM	$67.77	-42.1%
EV/EBITDA	$117.13	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $525.50M

Near-term growth (yrs 1–5)(%)Rev: 7.7% / EPS: -4.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.27%

Computed WACC: 10.27%

Cost of equity (Re)11.65%(Rf 4.30% + β 1.34 × ERP 5.50%)

Cost of debt (Rd)6.33%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)79.31%

Debt weight (D/V)20.69%

Results

Intrinsic Value / share$97.34

Current Price$116.98

Upside / Downside-16.8%

Net Debt (used)$1.71B

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

WACC \ Near-term	-0.3%	3.7%	7.7%	11.7%	15.7%
7.0%	$125.45	$154.94	$189.14	$228.61	$273.93
8.0%	$98.36	$122.02	$149.41	$180.99	$217.21
9.0%	$79.63	$99.26	$121.96	$148.10	$178.05
10.0%	$65.90	$82.59	$101.87	$124.04	$149.43
11.0%	$55.41	$69.87	$86.55	$105.70	$127.61

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $9.55

Book Value / share($)Yahoo: $34.43

Results

Graham Number$86.01

Current Price$116.98

Margin of Safety-26.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.27%

Terminal growth rate(%)

Computed WACC: 10.27%

Cost of equity (Re)11.65%(Rf 4.30% + β 1.34 × ERP 5.50%)

Cost of debt (Rd)6.33%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)79.31%

Debt weight (D/V)20.69%

Results

Current Price$116.98

Implied Near-term FCF Growth10.4%

Historical Revenue Growth7.7%

Historical Earnings Growth-4.2%

Base FCF (TTM)$525.50M

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: $3.29

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.77

Current Price$116.98

Upside / Downside-42.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.51B

Target EV/EBITDA multipleCurrent: 6.9×

Net Debt($B)Default: $1.71B

Results

Implied Equity Value / share$117.13

Current Price$116.98

Upside / Downside+0.1%

Implied EV$10.46B

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

Mult \ Net Debt	$1.71B	$1.71B	$1.71B	$1.71B	$1.71B
2.9x	$36.05	$36.05	$36.05	$36.05	$36.05
4.9x	$76.59	$76.59	$76.59	$76.59	$76.59
6.9x	$117.13	$117.13	$117.13	$117.13	$117.13
8.9x	$157.66	$157.66	$157.66	$157.66	$157.66
10.9x	$198.20	$198.20	$198.20	$198.20	$198.20

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