AMH — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($29.76)
DCF	$20.61	-30.7%
Graham Number	$22.57	-24.2%
Reverse DCF	—	implied g: 9.1%
DDM	$25.34	-14.9%
EV/EBITDA	$31.05	+4.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $719.99M

Near-term growth (yrs 1–5)(%)Rev: 4.2% / EPS: 0.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.03%

Computed WACC: 7.03%

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

Cost of debt (Rd)3.66%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)71.09%

Debt weight (D/V)28.91%

Results

Intrinsic Value / share$35.63

Current Price$29.76

Upside / Downside+19.7%

Net Debt (used)$5.00B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$20.90	$27.86	$35.96	$45.33	$56.12
8.0%	$14.78	$20.38	$26.89	$34.41	$43.06
9.0%	$10.54	$15.20	$20.61	$26.86	$34.03
10.0%	$7.42	$11.40	$16.01	$21.32	$27.42
11.0%	$5.04	$8.50	$12.49	$17.10	$22.37

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.18

Book Value / share($)Yahoo: $19.18

Results

Graham Number$22.57

Current Price$29.76

Margin of Safety-24.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.03%

Terminal growth rate(%)

Computed WACC: 7.03%

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

Cost of debt (Rd)3.66%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)71.09%

Debt weight (D/V)28.91%

Results

Current Price$29.76

Implied Near-term FCF Growth3.0%

Historical Revenue Growth4.2%

Historical Earnings Growth0.2%

Base FCF (TTM)$719.99M

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: $1.23

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$25.34

Current Price$29.76

Upside / Downside-14.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $952.01M

Target EV/EBITDA multipleCurrent: 17.3×

Net Debt($B)Default: $5.00B

Results

Implied Equity Value / share$31.05

Current Price$29.76

Upside / Downside+4.3%

Implied EV$16.51B

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

Mult \ Net Debt	$3.00B	$4.00B	$5.00B	$6.00B	$7.00B
13.3x	$26.17	$23.47	$20.77	$18.07	$15.37
15.3x	$31.30	$28.61	$25.91	$23.21	$20.51
17.3x	$36.44	$33.74	$31.05	$28.35	$25.65
19.3x	$41.58	$38.88	$36.19	$33.49	$30.79
21.3x	$46.72	$44.02	$41.32	$38.63	$35.93

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