BF-B — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($28.04)
DCF	$25.60	-8.7%
Graham Number	$18.41	-34.3%
Reverse DCF	—	implied g: 6.2%
DDM	$18.95	-32.4%
EV/EBITDA	$45.36	+61.8%

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: 6.02%

Computed WACC: 6.02%

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)83.07%

Debt weight (D/V)16.93%

Results

Intrinsic Value / share$54.32

Current Price$28.04

Upside / Downside+93.7%

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%	$25.89	$32.73	$40.68	$49.88	$60.48
8.0%	$19.88	$25.38	$31.77	$39.15	$47.65
9.0%	$15.71	$20.29	$25.60	$31.74	$38.78
10.0%	$12.65	$16.56	$21.09	$26.30	$32.29
11.0%	$10.31	$13.71	$17.63	$22.15	$27.33

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$28.04

Margin of Safety-34.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.02%

Terminal growth rate(%)

Computed WACC: 6.02%

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)83.07%

Debt weight (D/V)16.93%

Results

Current Price$28.04

Implied Near-term FCF Growth-3.4%

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$28.04

Upside / Downside-32.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.17B

Target EV/EBITDA multipleCurrent: 13.4×

Net Debt($B)Default: $2.33B

Results

Implied Equity Value / share$45.36

Current Price$28.04

Upside / Downside+61.8%

Implied EV$15.69B

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

Mult \ Net Debt	$328.00M	$1.33B	$2.33B	$3.33B	$4.33B
9.4x	$36.21	$32.82	$29.42	$26.03	$22.63
11.4x	$44.18	$40.79	$37.39	$34.00	$30.60
13.4x	$52.15	$48.76	$45.36	$41.97	$38.57
15.4x	$60.12	$56.73	$53.33	$49.94	$46.54
17.4x	$68.09	$64.70	$61.30	$57.91	$54.51

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