BAH — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($77.81)
DCF	$153.45	+97.2%
Graham Number	$35.86	-53.9%
Reverse DCF	—	implied g: 3.1%
DDM	$48.62	-37.5%
EV/EBITDA	$78.37	+0.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $809.13M

Near-term growth (yrs 1–5)(%)Rev: -10.2% / EPS: 12.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.54%

Computed WACC: 5.54%

Cost of equity (Re)6.22%(Rf 4.30% + β 0.35 × ERP 5.50%)

Cost of debt (Rd)5.02%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.86%

Debt weight (D/V)30.14%

Results

Intrinsic Value / share$378.07

Current Price$77.81

Upside / Downside+385.9%

Net Debt (used)$3.25B

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

WACC \ Near-term	4.4%	8.4%	12.4%	16.4%	20.4%
7.0%	$162.41	$198.82	$240.82	$289.05	$344.16
8.0%	$126.57	$155.63	$189.10	$227.50	$271.35
9.0%	$101.85	$125.84	$153.45	$185.09	$221.18
10.0%	$83.79	$104.08	$127.42	$154.14	$184.60
11.0%	$70.02	$87.52	$107.62	$130.60	$156.78

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.74

Book Value / share($)Yahoo: $8.48

Results

Graham Number$35.86

Current Price$77.81

Margin of Safety-53.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.54%

Terminal growth rate(%)

Computed WACC: 5.54%

Cost of equity (Re)6.22%(Rf 4.30% + β 0.35 × ERP 5.50%)

Cost of debt (Rd)5.02%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.86%

Debt weight (D/V)30.14%

Results

Current Price$77.81

Implied Near-term FCF Growth-8.2%

Historical Revenue Growth-10.2%

Historical Earnings Growth12.4%

Base FCF (TTM)$809.13M

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: $2.36

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$48.62

Current Price$77.81

Upside / Downside-37.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.26B

Target EV/EBITDA multipleCurrent: 10.1×

Net Debt($B)Default: $3.25B

Results

Implied Equity Value / share$78.37

Current Price$77.81

Upside / Downside+0.7%

Implied EV$12.76B

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

Mult \ Net Debt	$1.25B	$2.25B	$3.25B	$4.25B	$5.25B
6.1x	$53.21	$44.97	$36.72	$28.48	$20.23
8.1x	$74.03	$65.79	$57.55	$49.30	$41.06
10.1x	$94.86	$86.61	$78.37	$70.13	$61.88
12.1x	$115.68	$107.44	$99.19	$90.95	$82.71
14.1x	$136.51	$128.26	$120.02	$111.77	$103.53

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