AVB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($179.01)
DCF	$100.96	-43.6%
Graham Number	$117.47	-34.4%
Reverse DCF	—	implied g: 11.6%
DDM	$146.67	-18.1%
EV/EBITDA	$179.03	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.34B

Near-term growth (yrs 1–5)(%)Rev: 3.7% / EPS: -40.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.75%

Computed WACC: 6.75%

Cost of equity (Re)8.40%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)2.98%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)72.74%

Debt weight (D/V)27.26%

Results

Intrinsic Value / share$190.41

Current Price$179.01

Upside / Downside+6.4%

Net Debt (used)$9.31B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$102.39	$136.44	$176.05	$221.89	$274.69
8.0%	$72.44	$99.84	$131.67	$168.46	$210.79
9.0%	$51.68	$74.49	$100.96	$131.51	$166.61
10.0%	$36.44	$55.90	$78.45	$104.44	$134.26
11.0%	$24.77	$41.68	$61.24	$83.76	$109.57

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.39

Book Value / share($)Yahoo: $82.99

Results

Graham Number$117.47

Current Price$179.01

Margin of Safety-34.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.75%

Terminal growth rate(%)

Computed WACC: 6.75%

Cost of equity (Re)8.40%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)2.98%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)72.74%

Debt weight (D/V)27.26%

Results

Current Price$179.01

Implied Near-term FCF Growth4.3%

Historical Revenue Growth3.7%

Historical Earnings Growth-40.9%

Base FCF (TTM)$1.34B

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: $7.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$146.67

Current Price$179.01

Upside / Downside-18.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.85B

Target EV/EBITDA multipleCurrent: 18.7×

Net Debt($B)Default: $9.31B

Results

Implied Equity Value / share$179.03

Current Price$179.01

Upside / Downside+0.0%

Implied EV$34.58B

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

Mult \ Net Debt	$5.31B	$7.31B	$9.31B	$11.31B	$13.31B
14.7x	$155.03	$140.86	$126.69	$112.52	$98.35
16.7x	$181.20	$167.03	$152.86	$138.69	$124.52
18.7x	$207.37	$193.20	$179.03	$164.86	$150.69
20.7x	$233.55	$219.37	$205.20	$191.03	$176.86
22.7x	$259.72	$245.55	$231.38	$217.21	$203.04

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