BHC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($5.95)
DCF	$12.85	+115.9%
Graham Number	—	—
Reverse DCF	—	implied g: 7.4%
DDM	—	—
EV/EBITDA	$8.46	+42.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.09B

Near-term growth (yrs 1–5)(%)Rev: 9.3% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.01%

Computed WACC: 6.01%

Cost of equity (Re)6.33%(Rf 4.30% + β 0.37 × ERP 5.50%)

Cost of debt (Rd)7.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)9.49%

Debt weight (D/V)90.51%

Results

Intrinsic Value / share$72.93

Current Price$5.95

Upside / Downside+1125.8%

Net Debt (used)$19.77B

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

WACC \ Near-term	1.3%	5.3%	9.3%	13.3%	17.3%
7.0%	$15.14	$28.61	$44.20	$62.15	$82.74
8.0%	$2.47	$13.25	$25.71	$40.06	$56.48
9.0%	$-6.29	$2.64	$12.95	$24.81	$38.37
10.0%	$-12.70	$-5.12	$3.63	$13.66	$25.14
11.0%	$-17.59	$-11.03	$-3.48	$5.17	$15.06

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.42

Book Value / share($)Yahoo: $-1.50

Results

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

Graham Number—

Current Price$5.95

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.01%

Terminal growth rate(%)

Computed WACC: 6.01%

Cost of equity (Re)6.33%(Rf 4.30% + β 0.37 × ERP 5.50%)

Cost of debt (Rd)7.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)9.49%

Debt weight (D/V)90.51%

Results

Current Price$5.95

Implied Near-term FCF Growth-2.4%

Historical Revenue Growth9.3%

Historical Earnings Growth—

Base FCF (TTM)$1.09B

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$5.95

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.40B

Target EV/EBITDA multipleCurrent: 6.7×

Net Debt($B)Default: $19.77B

Results

Implied Equity Value / share$8.46

Current Price$5.95

Upside / Downside+42.2%

Implied EV$22.91B

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

Mult \ Net Debt	$9.77B	$14.77B	$19.77B	$24.77B	$29.77B
2.7x	$-1.25	$-14.75	$-28.24	$-41.73	$-55.22
4.7x	$17.10	$3.60	$-9.89	$-23.38	$-36.87
6.7x	$35.45	$21.96	$8.46	$-5.03	$-18.52
8.7x	$53.80	$40.31	$26.81	$13.32	$-0.17
10.7x	$72.15	$58.66	$45.16	$31.67	$18.18

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