AROC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($36.78)
DCF	$109.15	+196.8%
Graham Number	$17.02	-53.7%
Reverse DCF	—	implied g: 74.8%
DDM	$17.10	-53.5%
EV/EBITDA	$36.69	-0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $13.27M

Near-term growth (yrs 1–5)(%)Rev: 15.5% / EPS: 95.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.77%

Computed WACC: 6.77%

Cost of equity (Re)9.32%(Rf 4.30% + β 0.91 × 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)72.67%

Debt weight (D/V)27.33%

Results

Intrinsic Value / share$201.08

Current Price$36.78

Upside / Downside+446.7%

Net Debt (used)$2.42B

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

WACC \ Near-term	87.4%	91.4%	95.4%	99.4%	103.4%
7.0%	$149.37	$167.48	$187.17	$208.53	$231.68
8.0%	$111.65	$125.57	$140.69	$157.10	$174.88
9.0%	$86.06	$97.12	$109.15	$122.20	$136.33
10.0%	$67.69	$76.71	$86.52	$97.15	$108.68
11.0%	$53.98	$61.47	$69.62	$78.45	$88.02

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.51

Book Value / share($)Yahoo: $8.53

Results

Graham Number$17.02

Current Price$36.78

Margin of Safety-53.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.77%

Terminal growth rate(%)

Computed WACC: 6.77%

Cost of equity (Re)9.32%(Rf 4.30% + β 0.91 × 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)72.67%

Debt weight (D/V)27.33%

Results

Current Price$36.78

Implied Near-term FCF Growth63.1%

Historical Revenue Growth15.5%

Historical Earnings Growth95.4%

Base FCF (TTM)$13.27M

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: $0.83

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$17.10

Current Price$36.78

Upside / Downside-53.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $832.59M

Target EV/EBITDA multipleCurrent: 10.6×

Net Debt($B)Default: $2.42B

Results

Implied Equity Value / share$36.69

Current Price$36.78

Upside / Downside-0.2%

Implied EV$8.86B

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

Mult \ Net Debt	$423.87M	$1.42B	$2.42B	$3.42B	$4.42B
6.6x	$29.11	$23.40	$17.70	$12.00	$6.30
8.6x	$38.60	$32.90	$27.20	$21.50	$15.79
10.6x	$48.10	$42.40	$36.69	$30.99	$25.29
12.6x	$57.59	$51.89	$46.19	$40.49	$34.78
14.6x	$67.09	$61.39	$55.68	$49.98	$44.28

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