AYI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($295.64)
DCF	$492.34	+66.5%
Graham Number	$163.69	-44.6%
Reverse DCF	—	implied g: 11.7%
DDM	$14.63	-95.1%
EV/EBITDA	$293.70	-0.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $370.28M

Near-term growth (yrs 1–5)(%)Rev: 20.2% / EPS: 14.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.42%

Computed WACC: 11.42%

Cost of equity (Re)12.57%(Rf 4.30% + β 1.50 × 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)90.89%

Debt weight (D/V)9.11%

Results

Intrinsic Value / share$335.00

Current Price$295.64

Upside / Downside+13.3%

Net Debt (used)$534.00M

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

WACC \ Near-term	12.2%	16.2%	20.2%	24.2%	28.2%
7.0%	$538.07	$639.13	$754.72	$886.39	$1035.77
8.0%	$427.70	$507.74	$599.21	$703.34	$821.39
9.0%	$351.81	$417.42	$492.34	$577.57	$674.14
10.0%	$296.57	$351.70	$414.60	$486.11	$567.08
11.0%	$254.66	$301.86	$355.67	$416.79	$485.96

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $13.00

Book Value / share($)Yahoo: $91.61

Results

Graham Number$163.69

Current Price$295.64

Margin of Safety-44.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.42%

Terminal growth rate(%)

Computed WACC: 11.42%

Cost of equity (Re)12.57%(Rf 4.30% + β 1.50 × 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)90.89%

Debt weight (D/V)9.11%

Results

Current Price$295.64

Implied Near-term FCF Growth18.0%

Historical Revenue Growth20.2%

Historical Earnings Growth14.0%

Base FCF (TTM)$370.28M

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: $0.71

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$14.63

Current Price$295.64

Upside / Downside-95.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $754.90M

Target EV/EBITDA multipleCurrent: 12.6×

Net Debt($B)Default: $534.00M

Results

Implied Equity Value / share$293.70

Current Price$295.64

Upside / Downside-0.7%

Implied EV$9.54B

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

Mult \ Net Debt	-$1.47B	-$466.00M	$534.00M	$1.53B	$2.53B
8.6x	$260.45	$227.84	$195.22	$162.61	$130.00
10.6x	$309.69	$277.08	$244.46	$211.85	$179.24
12.6x	$358.93	$326.31	$293.70	$261.09	$228.48
14.6x	$408.17	$375.55	$342.94	$310.33	$277.72
16.6x	$457.41	$424.79	$392.18	$359.57	$326.95

← Overview Financial Statements ← Companies