ARLO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($15.29)
DCF	$23.93	+56.5%
Graham Number	$0.91	-94.1%
Reverse DCF	—	implied g: 7.8%
DDM	—	—
EV/EBITDA	$15.82	+3.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $70.67M

Near-term growth (yrs 1–5)(%)Rev: 16.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 13.59%

Computed WACC: 13.59%

Cost of equity (Re)13.64%(Rf 4.30% + β 1.70 × 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)99.59%

Debt weight (D/V)0.41%

Results

Intrinsic Value / share$13.69

Current Price$15.29

Upside / Downside-10.4%

Net Debt (used)-$159.68M

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

WACC \ Near-term	8.2%	12.2%	16.2%	20.2%	24.2%
7.0%	$25.49	$29.98	$35.14	$41.04	$47.76
8.0%	$20.83	$24.40	$28.50	$33.18	$38.51
9.0%	$17.62	$20.56	$23.93	$27.77	$32.14
10.0%	$15.28	$17.76	$20.60	$23.83	$27.51
11.0%	$13.51	$15.63	$18.07	$20.84	$23.99

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.03

Book Value / share($)Yahoo: $1.22

Results

Graham Number$0.91

Current Price$15.29

Margin of Safety-94.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 13.59%

Terminal growth rate(%)

Computed WACC: 13.59%

Cost of equity (Re)13.64%(Rf 4.30% + β 1.70 × 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)99.59%

Debt weight (D/V)0.41%

Results

Current Price$15.29

Implied Near-term FCF Growth18.6%

Historical Revenue Growth16.2%

Historical Earnings Growth—

Base FCF (TTM)$70.67M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$15.29

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $10.00M

Target EV/EBITDA multipleCurrent: 151.7×

Net Debt($B)Default: -$159.68M

Results

Implied Equity Value / share$15.82

Current Price$15.29

Upside / Downside+3.5%

Implied EV$1.52B

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

Mult \ Net Debt	-$2.16B	-$1.16B	-$159.68M	$840.32M	$1.84B
147.7x	$34.31	$24.87	$15.44	$6.01	$-3.43
149.7x	$34.50	$25.06	$15.63	$6.19	$-3.24
151.7x	$34.69	$25.25	$15.82	$6.38	$-3.05
153.7x	$34.88	$25.44	$16.01	$6.57	$-2.86
155.7x	$35.06	$25.63	$16.20	$6.76	$-2.67

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