AZO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($3679.52)
DCF	$739.57	-79.9%
Graham Number	—	—
Reverse DCF	—	implied g: 27.5%
DDM	—	—
EV/EBITDA	$3882.39	+5.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.15B

Near-term growth (yrs 1–5)(%)Rev: 8.2% / EPS: -4.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.20%

Computed WACC: 5.20%

Cost of equity (Re)6.25%(Rf 4.30% + β 0.35 × 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)83.13%

Debt weight (D/V)16.87%

Results

Intrinsic Value / share$2913.85

Current Price$3679.52

Upside / Downside-20.8%

Net Debt (used)$12.11B

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

WACC \ Near-term	0.2%	4.2%	8.2%	12.2%	16.2%
7.0%	$778.85	$1077.90	$1424.50	$1824.23	$2283.07
8.0%	$502.19	$741.92	$1019.41	$1339.06	$1705.61
9.0%	$310.85	$509.70	$739.57	$1004.05	$1307.02
10.0%	$170.70	$339.71	$534.83	$759.08	$1015.70
11.0%	$63.65	$209.97	$378.67	$572.33	$793.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $143.26

Book Value / share($)Yahoo: $-194.67

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$3679.52

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.20%

Terminal growth rate(%)

Computed WACC: 5.20%

Cost of equity (Re)6.25%(Rf 4.30% + β 0.35 × 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)83.13%

Debt weight (D/V)16.87%

Results

Current Price$3679.52

Implied Near-term FCF Growth11.2%

Historical Revenue Growth8.2%

Historical Earnings Growth-4.6%

Base FCF (TTM)$1.15B

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$3679.52

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.18B

Target EV/EBITDA multipleCurrent: 18.3×

Net Debt($B)Default: $12.11B

Results

Implied Equity Value / share$3882.39

Current Price$3679.52

Upside / Downside+5.5%

Implied EV$76.44B

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

Mult \ Net Debt	$6.11B	$9.11B	$12.11B	$15.11B	$18.11B
14.3x	$3235.01	$3053.94	$2872.86	$2691.79	$2510.71
16.3x	$3739.78	$3558.70	$3377.63	$3196.55	$3015.48
18.3x	$4244.54	$4063.47	$3882.39	$3701.32	$3520.25
20.3x	$4749.31	$4568.23	$4387.16	$4206.09	$4025.01
22.3x	$5254.07	$5073.00	$4891.92	$4710.85	$4529.78

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