CMS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($78.08)
DCF	$-212.89	-372.7%
Graham Number	$48.08	-38.4%
Reverse DCF	—	—
DDM	$46.97	-39.8%
EV/EBITDA	$80.65	+3.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$1.74B

Near-term growth (yrs 1–5)(%)Rev: 12.3% / EPS: 6.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.57%

Computed WACC: 5.57%

Cost of equity (Re)6.95%(Rf 4.30% + β 0.48 × ERP 5.50%)

Cost of debt (Rd)4.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)55.84%

Debt weight (D/V)44.16%

Results

Intrinsic Value / share$-400.27

Current Price$78.08

Upside / Downside-612.6%

Net Debt (used)$18.41B

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

WACC \ Near-term	4.3%	8.3%	12.3%	16.3%	20.3%
7.0%	$-220.69	$-251.62	$-287.30	$-328.27	$-375.10
8.0%	$-190.29	$-214.97	$-243.41	$-276.03	$-313.28
9.0%	$-169.32	$-189.69	$-213.15	$-240.03	$-270.70
10.0%	$-153.99	$-171.23	$-191.06	$-213.76	$-239.64
11.0%	$-142.31	$-157.18	$-174.25	$-193.78	$-216.02

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.53

Book Value / share($)Yahoo: $29.11

Results

Graham Number$48.08

Current Price$78.08

Margin of Safety-38.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.57%

Terminal growth rate(%)

Computed WACC: 5.57%

Cost of equity (Re)6.95%(Rf 4.30% + β 0.48 × ERP 5.50%)

Cost of debt (Rd)4.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)55.84%

Debt weight (D/V)44.16%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$78.08

Implied Near-term FCF Growth—

Historical Revenue Growth12.3%

Historical Earnings Growth6.6%

Base FCF (TTM)-$1.74B

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: $2.28

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$46.97

Current Price$78.08

Upside / Downside-39.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.02B

Target EV/EBITDA multipleCurrent: 14.3×

Net Debt($B)Default: $18.41B

Results

Implied Equity Value / share$80.65

Current Price$78.08

Upside / Downside+3.3%

Implied EV$43.13B

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

Mult \ Net Debt	$8.41B	$13.41B	$18.41B	$23.41B	$28.41B
10.3x	$73.87	$57.56	$41.24	$24.92	$8.60
12.3x	$93.58	$77.26	$60.94	$44.63	$28.31
14.3x	$113.28	$96.97	$80.65	$64.33	$48.01
16.3x	$132.99	$116.67	$100.35	$84.04	$67.72
18.3x	$152.69	$136.38	$120.06	$103.74	$87.42

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