CB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($340.86)
DCF	$1966.53	+476.9%
Graham Number	$330.04	-3.2%
Reverse DCF	—	implied g: -0.9%
DDM	$79.93	-76.6%
EV/EBITDA	$355.44	+4.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $12.14B

Near-term growth (yrs 1–5)(%)Rev: 5.5% / EPS: 27.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.53%

Computed WACC: 6.53%

Cost of equity (Re)6.99%(Rf 4.30% + β 0.49 × ERP 5.50%)

Cost of debt (Rd)5.08%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)84.46%

Debt weight (D/V)15.54%

Results

Intrinsic Value / share$3472.24

Current Price$340.86

Upside / Downside+918.7%

Net Debt (used)$17.57B

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

WACC \ Near-term	19.9%	23.9%	27.9%	31.9%	35.9%
7.0%	$2223.49	$2613.50	$3056.26	$3556.98	$4121.23
8.0%	$1756.45	$2063.47	$2411.82	$2805.58	$3249.10
9.0%	$1436.16	$1686.35	$1970.05	$2290.58	$2651.44
10.0%	$1203.72	$1412.72	$1649.59	$1917.06	$2218.06
11.0%	$1027.94	$1205.86	$1407.38	$1634.82	$1890.64

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $25.67

Book Value / share($)Yahoo: $188.59

Results

Graham Number$330.04

Current Price$340.86

Margin of Safety-3.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.53%

Terminal growth rate(%)

Computed WACC: 6.53%

Cost of equity (Re)6.99%(Rf 4.30% + β 0.49 × ERP 5.50%)

Cost of debt (Rd)5.08%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)84.46%

Debt weight (D/V)15.54%

Results

Current Price$340.86

Implied Near-term FCF Growth-7.9%

Historical Revenue Growth5.5%

Historical Earnings Growth27.9%

Base FCF (TTM)$12.14B

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: $3.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$79.93

Current Price$340.86

Upside / Downside-76.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $13.27B

Target EV/EBITDA multipleCurrent: 11.8×

Net Debt($B)Default: $17.57B

Results

Implied Equity Value / share$355.44

Current Price$340.86

Upside / Downside+4.3%

Implied EV$156.59B

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

Mult \ Net Debt	$9.57B	$13.57B	$17.57B	$21.57B	$25.57B
7.8x	$240.20	$229.97	$219.74	$209.52	$199.29
9.8x	$308.05	$297.82	$287.59	$277.37	$267.14
11.8x	$375.90	$365.67	$355.44	$345.21	$334.99
13.8x	$443.75	$433.52	$423.29	$413.06	$402.84
15.8x	$511.60	$501.37	$491.14	$480.91	$470.69

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