CMI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($564.31)
DCF	$1292.31	+129.0%
Graham Number	$203.04	-64.0%
Reverse DCF	—	implied g: 26.5%
DDM	$161.09	-71.5%
EV/EBITDA	$588.02	+4.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.37B

Near-term growth (yrs 1–5)(%)Rev: 1.1% / EPS: 41.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.93%

Computed WACC: 9.93%

Cost of equity (Re)10.50%(Rf 4.30% + β 1.13 × ERP 5.50%)

Cost of debt (Rd)5.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.57%

Debt weight (D/V)9.43%

Results

Intrinsic Value / share$1083.80

Current Price$564.31

Upside / Downside+92.1%

Net Debt (used)$4.50B

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

WACC \ Near-term	33.4%	37.4%	41.4%	45.4%	49.4%
7.0%	$1531.64	$1775.44	$2049.00	$2354.98	$2696.18
8.0%	$1195.49	$1385.89	$1599.46	$1838.27	$2104.51
9.0%	$965.77	$1119.70	$1292.31	$1485.26	$1700.32
10.0%	$799.68	$927.27	$1070.30	$1230.14	$1408.23
11.0%	$674.60	$782.38	$903.16	$1038.08	$1188.38

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $20.49

Book Value / share($)Yahoo: $89.42

Results

Graham Number$203.04

Current Price$564.31

Margin of Safety-64.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.93%

Terminal growth rate(%)

Computed WACC: 9.93%

Cost of equity (Re)10.50%(Rf 4.30% + β 1.13 × ERP 5.50%)

Cost of debt (Rd)5.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.57%

Debt weight (D/V)9.43%

Results

Current Price$564.31

Implied Near-term FCF Growth29.5%

Historical Revenue Growth1.1%

Historical Earnings Growth41.4%

Base FCF (TTM)$1.37B

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: $7.82

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$161.09

Current Price$564.31

Upside / Downside-71.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.19B

Target EV/EBITDA multipleCurrent: 16.5×

Net Debt($B)Default: $4.50B

Results

Implied Equity Value / share$588.02

Current Price$564.31

Upside / Downside+4.2%

Implied EV$85.75B

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

Mult \ Net Debt	$2.50B	$3.50B	$4.50B	$5.50B	$6.50B
12.5x	$452.24	$445.00	$437.77	$430.53	$423.29
14.5x	$527.37	$520.13	$512.89	$505.66	$498.42
16.5x	$602.50	$595.26	$588.02	$580.78	$573.55
18.5x	$677.62	$670.39	$663.15	$655.91	$648.67
20.5x	$752.75	$745.51	$738.28	$731.04	$723.80

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