ARES — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($113.36)
DCF	$318.53	+181.0%
Graham Number	$22.03	-80.6%
Reverse DCF	—	implied g: 5.9%
DDM	$111.24	-1.9%
EV/EBITDA	$144.45	+27.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.02B

Near-term growth (yrs 1–5)(%)Rev: 19.5% / EPS: -81.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.33%

Computed WACC: 9.33%

Cost of equity (Re)12.91%(Rf 4.30% + β 1.56 × 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)72.31%

Debt weight (D/V)27.69%

Results

Intrinsic Value / share$298.31

Current Price$113.36

Upside / Downside+163.2%

Net Debt (used)$12.77B

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

WACC \ Near-term	11.5%	15.5%	19.5%	23.5%	27.5%
7.0%	$351.84	$426.96	$512.95	$610.96	$722.22
8.0%	$270.51	$330.03	$398.11	$475.66	$563.63
9.0%	$214.57	$263.39	$319.18	$382.68	$454.68
10.0%	$173.84	$214.88	$261.75	$315.05	$375.44
11.0%	$142.93	$178.09	$218.20	$263.78	$315.40

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.70

Book Value / share($)Yahoo: $12.69

Results

Graham Number$22.03

Current Price$113.36

Margin of Safety-80.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.33%

Terminal growth rate(%)

Computed WACC: 9.33%

Cost of equity (Re)12.91%(Rf 4.30% + β 1.56 × 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)72.31%

Debt weight (D/V)27.69%

Results

Current Price$113.36

Implied Near-term FCF Growth6.8%

Historical Revenue Growth19.5%

Historical Earnings Growth-81.4%

Base FCF (TTM)$2.02B

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: $5.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$111.24

Current Price$113.36

Upside / Downside-1.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.24B

Target EV/EBITDA multipleCurrent: 35.5×

Net Debt($B)Default: $12.77B

Results

Implied Equity Value / share$144.45

Current Price$113.36

Upside / Downside+27.4%

Implied EV$44.10B

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

Mult \ Net Debt	$6.77B	$9.77B	$12.77B	$15.77B	$18.77B
31.5x	$149.22	$135.39	$121.55	$107.72	$93.88
33.5x	$160.67	$146.83	$133.00	$119.16	$105.33
35.5x	$172.11	$158.28	$144.45	$130.61	$116.78
37.5x	$183.56	$169.73	$155.89	$142.06	$128.22
39.5x	$195.01	$181.17	$167.34	$153.50	$139.67

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