ARMK — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($41.26)
DCF	$-9.78	-123.7%
Graham Number	$18.08	-56.2%
Reverse DCF	—	implied g: 33.8%
DDM	$9.89	-76.0%
EV/EBITDA	$41.36	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $190.13M

Near-term growth (yrs 1–5)(%)Rev: 6.1% / EPS: -7.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.67%

Computed WACC: 6.67%

Cost of equity (Re)10.71%(Rf 4.30% + β 1.17 × 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)62.24%

Debt weight (D/V)37.76%

Results

Intrinsic Value / share$-2.06

Current Price$41.26

Upside / Downside-105.0%

Net Debt (used)$6.13B

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

WACC \ Near-term	-1.9%	2.1%	6.1%	10.1%	14.1%
7.0%	$-9.60	$-6.84	$-3.64	$0.06	$4.31
8.0%	$-12.07	$-9.85	$-7.28	$-4.32	$-0.91
9.0%	$-13.77	$-11.93	$-9.80	$-7.34	$-4.51
10.0%	$-15.03	$-13.46	$-11.64	$-9.55	$-7.15
11.0%	$-15.99	$-14.62	$-13.05	$-11.24	$-9.17

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.19

Book Value / share($)Yahoo: $12.21

Results

Graham Number$18.08

Current Price$41.26

Margin of Safety-56.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.67%

Terminal growth rate(%)

Computed WACC: 6.67%

Cost of equity (Re)10.71%(Rf 4.30% + β 1.17 × 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)62.24%

Debt weight (D/V)37.76%

Results

Current Price$41.26

Implied Near-term FCF Growth24.5%

Historical Revenue Growth6.1%

Historical Earnings Growth-7.7%

Base FCF (TTM)$190.13M

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: $0.48

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$9.89

Current Price$41.26

Upside / Downside-76.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.33B

Target EV/EBITDA multipleCurrent: 12.8×

Net Debt($B)Default: $6.13B

Results

Implied Equity Value / share$41.36

Current Price$41.26

Upside / Downside+0.2%

Implied EV$17.00B

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

Mult \ Net Debt	$2.13B	$4.13B	$6.13B	$8.13B	$10.13B
8.8x	$36.30	$28.69	$21.08	$13.47	$5.86
10.8x	$46.44	$38.83	$31.22	$23.61	$16.00
12.8x	$56.58	$48.97	$41.36	$33.75	$26.14
14.8x	$66.71	$59.10	$51.49	$43.89	$36.28
16.8x	$76.85	$69.24	$61.63	$54.02	$46.41

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