BHE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($55.66)
DCF	$73.00	+31.2%
Graham Number	$21.72	-61.0%
Reverse DCF	—	implied g: 2.6%
DDM	$14.01	-74.8%
EV/EBITDA	$58.28	+4.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $130.60M

Near-term growth (yrs 1–5)(%)Rev: 7.2% / EPS: -63.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.34%

Computed WACC: 9.34%

Cost of equity (Re)9.75%(Rf 4.30% + β 0.99 × ERP 5.50%)

Cost of debt (Rd)8.62%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.99%

Debt weight (D/V)14.01%

Results

Intrinsic Value / share$69.24

Current Price$55.66

Upside / Downside+24.4%

Net Debt (used)$3.68M

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

WACC \ Near-term	-0.8%	3.2%	7.2%	11.2%	15.2%
7.0%	$74.55	$89.43	$106.70	$126.64	$149.55
8.0%	$60.99	$72.93	$86.78	$102.74	$121.06
9.0%	$51.61	$61.53	$73.00	$86.23	$101.38
10.0%	$44.73	$53.17	$62.92	$74.14	$87.00
11.0%	$39.47	$46.79	$55.23	$64.93	$76.03

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.68

Book Value / share($)Yahoo: $30.83

Results

Graham Number$21.72

Current Price$55.66

Margin of Safety-61.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.34%

Terminal growth rate(%)

Computed WACC: 9.34%

Cost of equity (Re)9.75%(Rf 4.30% + β 0.99 × ERP 5.50%)

Cost of debt (Rd)8.62%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.99%

Debt weight (D/V)14.01%

Results

Current Price$55.66

Implied Near-term FCF Growth3.4%

Historical Revenue Growth7.2%

Historical Earnings Growth-63.7%

Base FCF (TTM)$130.60M

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: $0.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$14.01

Current Price$55.66

Upside / Downside-74.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $136.84M

Target EV/EBITDA multipleCurrent: 15.2×

Net Debt($B)Default: $3.68M

Results

Implied Equity Value / share$58.28

Current Price$55.66

Upside / Downside+4.7%

Implied EV$2.08B

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

Mult \ Net Debt	-$2.00B	-$996.32M	$3.68M	$1.00B	$2.00B
11.2x	$98.99	$70.97	$42.94	$14.91	$-13.12
13.2x	$106.66	$78.64	$50.61	$22.58	$-5.45
15.2x	$114.34	$86.31	$58.28	$30.25	$2.22
17.2x	$122.01	$93.98	$65.95	$37.92	$9.90
19.2x	$129.68	$101.65	$73.62	$45.59	$17.57

← Overview Financial Statements ← Companies