CATO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($3.00)
DCF	$-7.92	-364.1%
Graham Number	—	—
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	—	—

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$3.24M

Near-term growth (yrs 1–5)(%)Rev: 6.3% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 2.08%

Computed WACC: 2.08%

Cost of equity (Re)7.63%(Rf 4.30% + β 0.60 × ERP 5.50%)

Cost of debt (Rd)0.04%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)27.02%

Debt weight (D/V)72.98%

Results

Intrinsic Value / share—

Current Price$3.00

Upside / Downside—

Net Debt (used)$81.01M

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

WACC \ Near-term	-1.7%	2.3%	6.3%	10.3%	14.3%
7.0%	$-7.97	$-8.67	$-9.47	$-10.41	$-11.48
8.0%	$-7.35	$-7.90	$-8.55	$-9.30	$-10.16
9.0%	$-6.91	$-7.38	$-7.92	$-8.54	$-9.25
10.0%	$-6.60	$-6.99	$-7.45	$-7.98	$-8.58
11.0%	$-6.35	$-6.70	$-7.09	$-7.55	$-8.07

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.48

Book Value / share($)Yahoo: $8.90

Results

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

Graham Number—

Current Price$3.00

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 2.08%

Terminal growth rate(%)

Computed WACC: 2.08%

Cost of equity (Re)7.63%(Rf 4.30% + β 0.60 × ERP 5.50%)

Cost of debt (Rd)0.04%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)27.02%

Debt weight (D/V)72.98%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$3.00

Implied Near-term FCF Growth—

Historical Revenue Growth6.3%

Historical Earnings Growth—

Base FCF (TTM)-$3.24M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$3.00

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: -$6.19M

Target EV/EBITDA multipleCurrent: -22.2×

Net Debt($B)Default: $81.01M

Results

Implied Equity Value / share$3.14

Current Price$3.00

Upside / Downside+4.7%

Implied EV$137.51M

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