AOS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($77.93)
DCF	$150.26	+92.8%
Graham Number	$34.08	-56.3%
Reverse DCF	—	implied g: 7.7%
DDM	$28.84	-63.0%
EV/EBITDA	$95.94	+23.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $426.16M

Near-term growth (yrs 1–5)(%)Rev: 0.0% / EPS: 19.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.61%

Computed WACC: 11.61%

Cost of equity (Re)11.69%(Rf 4.30% + β 1.34 × ERP 5.50%)

Cost of debt (Rd)9.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.14%

Debt weight (D/V)1.86%

Results

Intrinsic Value / share$101.76

Current Price$77.93

Upside / Downside+30.6%

Net Debt (used)$10.70M

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

WACC \ Near-term	11.1%	15.1%	19.1%	23.1%	27.1%
7.0%	$163.24	$193.20	$227.50	$266.62	$311.05
8.0%	$130.97	$154.71	$181.88	$212.84	$247.98
9.0%	$108.77	$128.25	$150.52	$175.88	$204.65
10.0%	$92.60	$108.99	$127.70	$149.00	$173.13
11.0%	$80.33	$94.37	$110.39	$128.61	$149.24

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.85

Book Value / share($)Yahoo: $13.41

Results

Graham Number$34.08

Current Price$77.93

Margin of Safety-56.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.61%

Terminal growth rate(%)

Computed WACC: 11.61%

Cost of equity (Re)11.69%(Rf 4.30% + β 1.34 × ERP 5.50%)

Cost of debt (Rd)9.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.14%

Debt weight (D/V)1.86%

Results

Current Price$77.93

Implied Near-term FCF Growth14.2%

Historical Revenue Growth0.0%

Historical Earnings Growth19.1%

Base FCF (TTM)$426.16M

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: $1.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$28.84

Current Price$77.93

Upside / Downside-63.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $813.10M

Target EV/EBITDA multipleCurrent: 13.3×

Net Debt($B)Default: $10.70M

Results

Implied Equity Value / share$95.94

Current Price$77.93

Upside / Downside+23.1%

Implied EV$10.80B

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

Mult \ Net Debt	-$1.99B	-$989.30M	$10.70M	$1.01B	$2.01B
9.3x	$84.80	$75.91	$67.01	$58.12	$49.22
11.3x	$99.27	$90.37	$81.48	$72.58	$63.69
13.3x	$113.73	$104.84	$95.94	$87.05	$78.15
15.3x	$128.20	$119.30	$110.41	$101.51	$92.62
17.3x	$142.66	$133.77	$124.87	$115.98	$107.08

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