AON — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($335.42)
DCF	$118363.73	+35188.7%
Graham Number	$129.25	-61.5%
Reverse DCF	—	implied g: 13.0%
DDM	$61.39	-81.7%
EV/EBITDA	$338.33	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $3.06B

Near-term growth (yrs 1–5)(%)Rev: 3.7% / EPS: 138.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.24%

Computed WACC: 7.24%

Cost of equity (Re)8.85%(Rf 4.30% + β 0.83 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)81.77%

Debt weight (D/V)18.23%

Results

Intrinsic Value / share$183250.73

Current Price$335.42

Upside / Downside+54534.0%

Net Debt (used)$13.45B

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

WACC \ Near-term	130.3%	134.3%	138.3%	142.3%	146.3%
7.0%	$165466.99	$180333.43	$196249.67	$213270.35	$231451.99
8.0%	$126397.46	$137751.49	$149907.11	$162906.06	$176791.46
9.0%	$99945.58	$108921.67	$118531.33	$128807.53	$139784.36
10.0%	$81018.51	$88293.22	$96081.28	$104409.41	$113305.22
11.0%	$66923.98	$72931.80	$79363.47	$86241.03	$93587.28

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $17.03

Book Value / share($)Yahoo: $43.60

Results

Graham Number$129.25

Current Price$335.42

Margin of Safety-61.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.24%

Terminal growth rate(%)

Computed WACC: 7.24%

Cost of equity (Re)8.85%(Rf 4.30% + β 0.83 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)81.77%

Debt weight (D/V)18.23%

Results

Current Price$335.42

Implied Near-term FCF Growth7.3%

Historical Revenue Growth3.7%

Historical Earnings Growth138.3%

Base FCF (TTM)$3.06B

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: $2.98

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$61.39

Current Price$335.42

Upside / Downside-81.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.66B

Target EV/EBITDA multipleCurrent: 15.2×

Net Debt($B)Default: $13.45B

Results

Implied Equity Value / share$338.33

Current Price$335.42

Upside / Downside+0.9%

Implied EV$86.02B

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

Mult \ Net Debt	$7.45B	$10.45B	$13.45B	$16.45B	$19.45B
11.2x	$260.68	$246.69	$232.71	$218.72	$204.74
13.2x	$313.49	$299.51	$285.52	$271.53	$257.55
15.2x	$366.30	$352.32	$338.33	$324.34	$310.36
17.2x	$419.11	$405.13	$391.14	$377.16	$363.17
19.2x	$471.92	$457.94	$443.95	$429.97	$415.98

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