ARE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($52.63)
DCF	$65.81	+25.0%
Graham Number	—	—
Reverse DCF	—	implied g: 3.3%
DDM	$96.41	+83.2%
EV/EBITDA	$73.90	+40.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.35B

Near-term growth (yrs 1–5)(%)Rev: -5.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.66%

Computed WACC: 5.66%

Cost of equity (Re)11.55%(Rf 4.30% + β 1.32 × ERP 5.50%)

Cost of debt (Rd)1.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)41.68%

Debt weight (D/V)58.32%

Results

Intrinsic Value / share$211.64

Current Price$52.63

Upside / Downside+302.1%

Net Debt (used)$12.21B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$66.98	$94.78	$127.11	$164.54	$207.64
8.0%	$42.52	$64.89	$90.88	$120.92	$155.47
9.0%	$25.58	$44.20	$65.81	$90.75	$119.41
10.0%	$13.13	$29.03	$47.43	$68.65	$93.00
11.0%	$3.61	$17.42	$33.38	$51.77	$72.84

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-8.44

Book Value / share($)Yahoo: $90.71

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$52.63

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.66%

Terminal growth rate(%)

Computed WACC: 5.66%

Cost of equity (Re)11.55%(Rf 4.30% + β 1.32 × ERP 5.50%)

Cost of debt (Rd)1.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)41.68%

Debt weight (D/V)58.32%

Results

Current Price$52.63

Implied Near-term FCF Growth-7.5%

Historical Revenue Growth-5.2%

Historical Earnings Growth—

Base FCF (TTM)$1.35B

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: $4.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$96.41

Current Price$52.63

Upside / Downside+83.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.94B

Target EV/EBITDA multipleCurrent: 12.9×

Net Debt($B)Default: $12.21B

Results

Implied Equity Value / share$73.90

Current Price$52.63

Upside / Downside+40.4%

Implied EV$25.02B

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

Mult \ Net Debt	$6.21B	$9.21B	$12.21B	$15.21B	$18.21B
8.9x	$63.76	$46.45	$29.14	$11.83	$-5.48
10.9x	$86.14	$68.83	$51.52	$34.21	$16.90
12.9x	$108.53	$91.22	$73.90	$56.59	$39.28
14.9x	$130.91	$113.60	$96.29	$78.98	$61.67
16.9x	$153.29	$135.98	$118.67	$101.36	$84.05

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