BBY — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($65.54)
DCF	$81.48	+24.3%
Graham Number	$29.35	-55.2%
Reverse DCF	—	implied g: 1.9%
DDM	$78.28	+19.4%
EV/EBITDA	$61.59	-6.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.14B

Near-term growth (yrs 1–5)(%)Rev: 2.4% / EPS: -47.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.23%

Computed WACC: 10.23%

Cost of equity (Re)12.24%(Rf 4.30% + β 1.44 × ERP 5.50%)

Cost of debt (Rd)4.40%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.06%

Debt weight (D/V)22.94%

Results

Intrinsic Value / share$66.05

Current Price$65.54

Upside / Downside+0.8%

Net Debt (used)$3.02B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$82.31	$101.86	$124.61	$150.94	$181.27
8.0%	$65.10	$80.84	$99.12	$120.25	$144.56
9.0%	$53.18	$66.28	$81.48	$99.03	$119.19
10.0%	$44.43	$55.61	$68.55	$83.48	$100.61
11.0%	$37.72	$47.44	$58.67	$71.60	$86.43

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.03

Book Value / share($)Yahoo: $12.63

Results

Graham Number$29.35

Current Price$65.54

Margin of Safety-55.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.23%

Terminal growth rate(%)

Computed WACC: 10.23%

Cost of equity (Re)12.24%(Rf 4.30% + β 1.44 × ERP 5.50%)

Cost of debt (Rd)4.40%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.06%

Debt weight (D/V)22.94%

Results

Current Price$65.54

Implied Near-term FCF Growth4.9%

Historical Revenue Growth2.4%

Historical Earnings Growth-47.6%

Base FCF (TTM)$1.14B

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: $3.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$78.28

Current Price$65.54

Upside / Downside+19.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.61B

Target EV/EBITDA multipleCurrent: 6.1×

Net Debt($B)Default: $3.02B

Results

Implied Equity Value / share$61.59

Current Price$65.54

Upside / Downside-6.0%

Implied EV$15.92B

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

Mult \ Net Debt	$1.02B	$2.02B	$3.02B	$4.02B	$5.02B
2.1x	$21.37	$16.60	$11.83	$7.05	$2.28
4.1x	$46.25	$41.48	$36.71	$31.94	$27.16
6.1x	$71.14	$66.37	$61.59	$56.82	$52.05
8.1x	$96.02	$91.25	$86.48	$81.70	$76.93
10.1x	$120.91	$116.13	$111.36	$106.59	$101.82

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