CME — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($319.50)
DCF	$223.88	-29.9%
Graham Number	$141.70	-55.7%
Reverse DCF	—	implied g: 41.8%
DDM	$107.12	-66.5%
EV/EBITDA	$318.71	-0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $837.26M

Near-term growth (yrs 1–5)(%)Rev: 8.0% / EPS: 35.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.77%

Computed WACC: 5.77%

Cost of equity (Re)5.84%(Rf 4.30% + β 0.28 × ERP 5.50%)

Cost of debt (Rd)4.62%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)96.83%

Debt weight (D/V)3.17%

Results

Intrinsic Value / share$500.91

Current Price$319.50

Upside / Downside+56.8%

Net Debt (used)-$784.70M

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

WACC \ Near-term	27.0%	31.0%	35.0%	39.0%	43.0%
7.0%	$258.41	$300.23	$347.41	$400.43	$459.85
8.0%	$204.34	$237.11	$274.06	$315.59	$362.10
9.0%	$167.32	$193.91	$223.88	$257.54	$295.23
10.0%	$140.52	$162.63	$187.55	$215.52	$246.83
11.0%	$120.30	$139.04	$160.15	$183.84	$210.35

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $11.15

Book Value / share($)Yahoo: $80.03

Results

Graham Number$141.70

Current Price$319.50

Margin of Safety-55.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.77%

Terminal growth rate(%)

Computed WACC: 5.77%

Cost of equity (Re)5.84%(Rf 4.30% + β 0.28 × ERP 5.50%)

Cost of debt (Rd)4.62%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)96.83%

Debt weight (D/V)3.17%

Results

Current Price$319.50

Implied Near-term FCF Growth27.1%

Historical Revenue Growth8.0%

Historical Earnings Growth35.0%

Base FCF (TTM)$837.26M

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: $5.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$107.12

Current Price$319.50

Upside / Downside-66.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.59B

Target EV/EBITDA multipleCurrent: 24.8×

Net Debt($B)Default: -$784.70M

Results

Implied Equity Value / share$318.71

Current Price$319.50

Upside / Downside-0.2%

Implied EV$113.80B

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

Mult \ Net Debt	-$2.78B	-$1.78B	-$784.70M	$215.30M	$1.22B
20.8x	$273.21	$270.42	$267.64	$264.86	$262.08
22.8x	$298.74	$295.96	$293.18	$290.40	$287.61
24.8x	$324.28	$321.49	$318.71	$315.93	$313.15
26.8x	$349.81	$347.03	$344.25	$341.47	$338.68
28.8x	$375.34	$372.56	$369.78	$367.00	$364.22

← Overview Financial Statements ← Companies