CABO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($101.14)
DCF	$56.99	-43.7%
Graham Number	—	—
Reverse DCF	—	implied g: 6.2%
DDM	$243.08	+140.3%
EV/EBITDA	$101.75	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $192.40M

Near-term growth (yrs 1–5)(%)Rev: -6.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 3.80%

Computed WACC: 3.80%

Cost of equity (Re)8.22%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)3.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)15.04%

Debt weight (D/V)84.96%

Results

Intrinsic Value / share$2485.55

Current Price$101.14

Upside / Downside+2357.5%

Net Debt (used)$3.06B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$62.14	$184.39	$326.62	$491.24	$680.84
8.0%	$-45.44	$52.96	$167.27	$299.39	$451.38
9.0%	$-119.98	$-38.05	$56.99	$166.69	$292.74
10.0%	$-174.71	$-104.81	$-23.85	$69.47	$176.58
11.0%	$-216.60	$-155.87	$-85.64	$-4.78	$87.91

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-80.59

Book Value / share($)Yahoo: $254.41

Results

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

Graham Number—

Current Price$101.14

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 3.80%

Terminal growth rate(%)

Computed WACC: 3.80%

Cost of equity (Re)8.22%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)3.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)15.04%

Debt weight (D/V)84.96%

Results

Current Price$101.14

Implied Near-term FCF Growth-16.1%

Historical Revenue Growth-6.1%

Historical Earnings Growth—

Base FCF (TTM)$192.40M

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: $11.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$243.08

Current Price$101.14

Upside / Downside+140.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $728.19M

Target EV/EBITDA multipleCurrent: 5.0×

Net Debt($B)Default: $3.06B

Results

Implied Equity Value / share$101.75

Current Price$101.14

Upside / Downside+0.6%

Implied EV$3.63B

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

Mult \ Net Debt	$1.06B	$2.06B	$3.06B	$4.06B	$5.06B
1.0x	$-60.23	$-237.68	$-415.14	$-592.60	$-770.05
3.0x	$198.22	$20.76	$-156.70	$-334.15	$-511.61
5.0x	$456.66	$279.20	$101.75	$-75.71	$-253.17
7.0x	$715.11	$537.65	$360.19	$182.74	$5.28
9.0x	$973.55	$796.09	$618.64	$441.18	$263.72

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