BLK — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($1068.31)
DCF	$2286.59	+114.0%
Graham Number	$535.48	-49.9%
Reverse DCF	—	implied g: 10.1%
DDM	$472.15	-55.8%
EV/EBITDA	$1107.78	+3.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $7.03B

Near-term growth (yrs 1–5)(%)Rev: 23.4% / EPS: -31.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.44%

Computed WACC: 11.44%

Cost of equity (Re)12.48%(Rf 4.30% + β 1.49 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)91.70%

Debt weight (D/V)8.30%

Results

Intrinsic Value / share$1562.35

Current Price$1068.31

Upside / Downside+46.2%

Net Debt (used)$739.00M

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

WACC \ Near-term	15.4%	19.4%	23.4%	27.4%	31.4%
7.0%	$2527.32	$2977.30	$3490.36	$4072.95	$4732.01
8.0%	$2016.17	$2371.60	$2776.58	$3236.18	$3755.81
9.0%	$1665.10	$1955.70	$2286.59	$2661.87	$3085.95
10.0%	$1409.90	$1653.45	$1930.59	$2244.72	$2599.49
11.0%	$1216.56	$1424.56	$1661.07	$1928.99	$2231.39

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $35.36

Book Value / share($)Yahoo: $360.41

Results

Graham Number$535.48

Current Price$1068.31

Margin of Safety-49.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.44%

Terminal growth rate(%)

Computed WACC: 11.44%

Cost of equity (Re)12.48%(Rf 4.30% + β 1.49 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)91.70%

Debt weight (D/V)8.30%

Results

Current Price$1068.31

Implied Near-term FCF Growth16.4%

Historical Revenue Growth23.4%

Historical Earnings Growth-31.7%

Base FCF (TTM)$7.03B

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: $22.92

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$472.15

Current Price$1068.31

Upside / Downside-55.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $9.69B

Target EV/EBITDA multipleCurrent: 17.8×

Net Debt($B)Default: $739.00M

Results

Implied Equity Value / share$1107.78

Current Price$1068.31

Upside / Downside+3.7%

Implied EV$172.56B

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

Mult \ Net Debt	-$1.26B	-$261.00M	$739.00M	$1.74B	$2.74B
13.8x	$870.88	$864.43	$857.98	$851.54	$845.09
15.8x	$995.78	$989.33	$982.88	$976.44	$969.99
17.8x	$1120.68	$1114.23	$1107.78	$1101.34	$1094.89
19.8x	$1245.58	$1239.13	$1232.68	$1226.24	$1219.79
21.8x	$1370.48	$1364.03	$1357.58	$1351.14	$1344.69

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