APAM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($40.42)
DCF	$271.55	+571.8%
Graham Number	$23.85	-41.0%
Reverse DCF	—	implied g: 2.4%
DDM	$67.98	+68.2%
EV/EBITDA	$45.33	+12.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $193.17M

Near-term growth (yrs 1–5)(%)Rev: 12.9% / EPS: 35.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.91%

Computed WACC: 12.91%

Cost of equity (Re)13.97%(Rf 4.30% + β 1.76 × ERP 5.50%)

Cost of debt (Rd)4.00%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.18%

Debt weight (D/V)9.82%

Results

Intrinsic Value / share$147.58

Current Price$40.42

Upside / Downside+265.1%

Net Debt (used)$54.51M

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

WACC \ Near-term	27.8%	31.8%	35.8%	39.8%	43.8%
7.0%	$314.85	$366.07	$423.80	$488.65	$561.28
8.0%	$248.08	$288.19	$333.40	$384.16	$440.99
9.0%	$202.38	$234.91	$271.55	$312.68	$358.71
10.0%	$169.29	$196.34	$226.79	$260.96	$299.18
11.0%	$144.34	$167.25	$193.04	$221.96	$254.31

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.06

Book Value / share($)Yahoo: $6.23

Results

Graham Number$23.85

Current Price$40.42

Margin of Safety-41.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.91%

Terminal growth rate(%)

Computed WACC: 12.91%

Cost of equity (Re)13.97%(Rf 4.30% + β 1.76 × ERP 5.50%)

Cost of debt (Rd)4.00%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.18%

Debt weight (D/V)9.82%

Results

Current Price$40.42

Implied Near-term FCF Growth11.1%

Historical Revenue Growth12.9%

Historical Earnings Growth35.8%

Base FCF (TTM)$193.17M

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: $3.30

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.98

Current Price$40.42

Upside / Downside+68.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $409.01M

Target EV/EBITDA multipleCurrent: 7.9×

Net Debt($B)Default: $54.51M

Results

Implied Equity Value / share$45.33

Current Price$40.42

Upside / Downside+12.2%

Implied EV$3.25B

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

Mult \ Net Debt	-$1.95B	-$945.49M	$54.51M	$1.05B	$2.05B
3.9x	$50.50	$36.31	$22.11	$7.92	$-6.27
5.9x	$62.11	$47.92	$33.72	$19.53	$5.34
7.9x	$73.72	$59.53	$45.33	$31.14	$16.95
9.9x	$85.33	$71.13	$56.94	$42.75	$28.56
11.9x	$96.94	$82.74	$68.55	$54.36	$40.17

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