CAT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($742.83)
DCF	$393.00	-47.1%
Graham Number	$139.18	-81.3%
Reverse DCF	—	implied g: 28.0%
DDM	$124.42	-83.3%
EV/EBITDA	$742.83	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.84B

Near-term growth (yrs 1–5)(%)Rev: 18.0% / EPS: -11.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.40%

Computed WACC: 11.40%

Cost of equity (Re)12.85%(Rf 4.30% + β 1.55 × 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)88.75%

Debt weight (D/V)11.25%

Results

Intrinsic Value / share$251.43

Current Price$742.83

Upside / Downside-66.2%

Net Debt (used)$34.73B

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

WACC \ Near-term	10.0%	14.0%	18.0%	22.0%	26.0%
7.0%	$429.83	$523.10	$630.02	$752.07	$890.82
8.0%	$330.81	$404.82	$489.59	$586.28	$696.12
9.0%	$262.66	$323.44	$393.00	$472.28	$562.28
10.0%	$213.01	$264.17	$322.67	$389.30	$464.89
11.0%	$175.30	$219.18	$269.31	$326.36	$391.04

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $18.79

Book Value / share($)Yahoo: $45.82

Results

Graham Number$139.18

Current Price$742.83

Margin of Safety-81.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.40%

Terminal growth rate(%)

Computed WACC: 11.40%

Cost of equity (Re)12.85%(Rf 4.30% + β 1.55 × 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)88.75%

Debt weight (D/V)11.25%

Results

Current Price$742.83

Implied Near-term FCF Growth35.4%

Historical Revenue Growth18.0%

Historical Earnings Growth-11.4%

Base FCF (TTM)$5.84B

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: $6.04

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$124.42

Current Price$742.83

Upside / Downside-83.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $13.96B

Target EV/EBITDA multipleCurrent: 27.2×

Net Debt($B)Default: $34.73B

Results

Implied Equity Value / share$742.83

Current Price$742.83

Upside / Downside-0.0%

Implied EV$380.35B

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

Mult \ Net Debt	$16.73B	$25.73B	$34.73B	$43.73B	$52.73B
23.2x	$661.49	$642.15	$622.81	$603.46	$584.12
25.2x	$721.50	$702.16	$682.82	$663.47	$644.13
27.2x	$781.51	$762.17	$742.83	$723.49	$704.14
29.2x	$841.52	$822.18	$802.84	$783.50	$764.15
31.2x	$901.53	$882.19	$862.85	$843.51	$824.16

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