CBT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($76.26)
DCF	$80.88	+6.1%
Graham Number	$62.31	-18.3%
Reverse DCF	—	implied g: 4.2%
DDM	$37.08	-51.4%
EV/EBITDA	$79.22	+3.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $291.62M

Near-term growth (yrs 1–5)(%)Rev: -11.1% / EPS: -18.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.28%

Computed WACC: 8.28%

Cost of equity (Re)9.06%(Rf 4.30% + β 0.86 × ERP 5.50%)

Cost of debt (Rd)7.01%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.96%

Debt weight (D/V)22.04%

Results

Intrinsic Value / share$93.24

Current Price$76.26

Upside / Downside+22.3%

Net Debt (used)$896.00M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$81.73	$101.72	$124.98	$151.91	$182.92
8.0%	$64.13	$80.22	$98.92	$120.53	$145.39
9.0%	$51.94	$65.34	$80.88	$98.83	$119.44
10.0%	$42.99	$54.42	$67.66	$82.93	$100.44
11.0%	$36.13	$46.07	$57.55	$70.78	$85.94

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.72

Book Value / share($)Yahoo: $30.16

Results

Graham Number$62.31

Current Price$76.26

Margin of Safety-18.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.28%

Terminal growth rate(%)

Computed WACC: 8.28%

Cost of equity (Re)9.06%(Rf 4.30% + β 0.86 × ERP 5.50%)

Cost of debt (Rd)7.01%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.96%

Debt weight (D/V)22.04%

Results

Current Price$76.26

Implied Near-term FCF Growth2.2%

Historical Revenue Growth-11.1%

Historical Earnings Growth-18.2%

Base FCF (TTM)$291.62M

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: $1.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$37.08

Current Price$76.26

Upside / Downside-51.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $763.00M

Target EV/EBITDA multipleCurrent: 6.6×

Net Debt($B)Default: $896.00M

Results

Implied Equity Value / share$79.22

Current Price$76.26

Upside / Downside+3.9%

Implied EV$5.03B

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

Mult \ Net Debt	-$1.10B	-$104.00M	$896.00M	$1.90B	$2.90B
2.6x	$59.07	$39.92	$20.77	$1.62	$-17.53
4.6x	$88.29	$69.14	$49.99	$30.84	$11.70
6.6x	$117.51	$98.36	$79.22	$60.07	$40.92
8.6x	$146.74	$127.59	$108.44	$89.29	$70.14
10.6x	$175.96	$156.81	$137.66	$118.51	$99.36

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