BWA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($55.98)
DCF	$75.06	+34.1%
Graham Number	$27.51	-50.9%
Reverse DCF	—	implied g: 0.6%
DDM	$14.01	-75.0%
EV/EBITDA	$56.82	+1.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $984.50M

Near-term growth (yrs 1–5)(%)Rev: 3.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.09%

Computed WACC: 8.09%

Cost of equity (Re)10.14%(Rf 4.30% + β 1.06 × ERP 5.50%)

Cost of debt (Rd)2.59%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)74.70%

Debt weight (D/V)25.30%

Results

Intrinsic Value / share$88.81

Current Price$55.98

Upside / Downside+58.6%

Net Debt (used)$1.74B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$75.77	$92.80	$112.61	$135.53	$161.94
8.0%	$60.79	$74.50	$90.41	$108.81	$129.98
9.0%	$50.41	$61.82	$75.06	$90.33	$107.89
10.0%	$42.79	$52.52	$63.80	$76.79	$91.71
11.0%	$36.95	$45.41	$55.19	$66.45	$79.36

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.28

Book Value / share($)Yahoo: $26.28

Results

Graham Number$27.51

Current Price$55.98

Margin of Safety-50.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.09%

Terminal growth rate(%)

Computed WACC: 8.09%

Cost of equity (Re)10.14%(Rf 4.30% + β 1.06 × ERP 5.50%)

Cost of debt (Rd)2.59%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)74.70%

Debt weight (D/V)25.30%

Results

Current Price$55.98

Implied Near-term FCF Growth-1.8%

Historical Revenue Growth3.9%

Historical Earnings Growth—

Base FCF (TTM)$984.50M

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$55.98

Upside / Downside-75.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.98B

Target EV/EBITDA multipleCurrent: 6.8×

Net Debt($B)Default: $1.74B

Results

Implied Equity Value / share$56.82

Current Price$55.98

Upside / Downside+1.5%

Implied EV$13.51B

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

Mult \ Net Debt	$1.74B	$1.74B	$1.74B	$1.74B	$1.74B
2.8x	$18.56	$18.56	$18.56	$18.56	$18.56
4.8x	$37.69	$37.69	$37.69	$37.69	$37.69
6.8x	$56.82	$56.82	$56.82	$56.82	$56.82
8.8x	$75.94	$75.94	$75.94	$75.94	$75.94
10.8x	$95.07	$95.07	$95.07	$95.07	$95.07

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