BF-A — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($28.62)
DCF	$44.74	+56.3%
Graham Number	$18.41	-35.7%
Reverse DCF	—	implied g: -0.5%
DDM	$18.95	-33.8%
EV/EBITDA	$80.47	+181.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $562.25M

Near-term growth (yrs 1–5)(%)Rev: -5.4% / EPS: -13.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.03%

Computed WACC: 6.03%

Cost of equity (Re)6.48%(Rf 4.30% + β 0.40 × ERP 5.50%)

Cost of debt (Rd)4.79%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.36%

Debt weight (D/V)16.64%

Results

Intrinsic Value / share$94.60

Current Price$28.62

Upside / Downside+230.5%

Net Debt (used)$2.33B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$45.24	$57.18	$71.07	$87.15	$105.66
8.0%	$34.73	$44.34	$55.51	$68.41	$83.25
9.0%	$27.45	$35.45	$44.74	$55.45	$67.76
10.0%	$22.11	$28.93	$36.84	$45.95	$56.42
11.0%	$18.01	$23.95	$30.81	$38.70	$47.76

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.71

Book Value / share($)Yahoo: $8.81

Results

Graham Number$18.41

Current Price$28.62

Margin of Safety-35.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.03%

Terminal growth rate(%)

Computed WACC: 6.03%

Cost of equity (Re)6.48%(Rf 4.30% + β 0.40 × ERP 5.50%)

Cost of debt (Rd)4.79%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.36%

Debt weight (D/V)16.64%

Results

Current Price$28.62

Implied Near-term FCF Growth-9.3%

Historical Revenue Growth-5.4%

Historical Earnings Growth-13.9%

Base FCF (TTM)$562.25M

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: $0.92

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$18.95

Current Price$28.62

Upside / Downside-33.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.17B

Target EV/EBITDA multipleCurrent: 13.5×

Net Debt($B)Default: $2.33B

Results

Implied Equity Value / share$80.47

Current Price$28.62

Upside / Downside+181.2%

Implied EV$15.90B

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

Mult \ Net Debt	$328.00M	$1.33B	$2.33B	$3.33B	$4.33B
9.5x	$64.48	$58.55	$52.62	$46.69	$40.76
11.5x	$78.40	$72.47	$66.54	$60.61	$54.68
13.5x	$92.33	$86.40	$80.47	$74.54	$68.61
15.5x	$106.25	$100.32	$94.39	$88.46	$82.53
17.5x	$120.18	$114.25	$108.32	$102.39	$96.46

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