CNO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($42.52)
DCF	$192.78	+353.4%
Graham Number	$38.34	-9.8%
Reverse DCF	—	implied g: -14.0%
DDM	$14.01	-67.1%
EV/EBITDA	$42.52	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.20B

Near-term growth (yrs 1–5)(%)Rev: 4.2% / EPS: -45.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.65%

Computed WACC: 6.65%

Cost of equity (Re)8.94%(Rf 4.30% + β 0.84 × ERP 5.50%)

Cost of debt (Rd)5.57%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)49.45%

Debt weight (D/V)50.55%

Results

Intrinsic Value / share$320.86

Current Price$42.52

Upside / Downside+654.6%

Net Debt (used)$2.89B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$194.70	$240.27	$293.30	$354.67	$425.35
8.0%	$154.59	$191.28	$233.89	$283.14	$339.81
9.0%	$126.80	$157.35	$192.78	$233.67	$280.66
10.0%	$106.40	$132.46	$162.64	$197.43	$237.36
11.0%	$90.78	$113.42	$139.60	$169.75	$204.30

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.34

Book Value / share($)Yahoo: $27.92

Results

Graham Number$38.34

Current Price$42.52

Margin of Safety-9.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.65%

Terminal growth rate(%)

Computed WACC: 6.65%

Cost of equity (Re)8.94%(Rf 4.30% + β 0.84 × ERP 5.50%)

Cost of debt (Rd)5.57%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)49.45%

Debt weight (D/V)50.55%

Results

Current Price$42.52

Implied Near-term FCF Growth-19.4%

Historical Revenue Growth4.2%

Historical Earnings Growth-45.2%

Base FCF (TTM)$1.20B

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: $0.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$14.01

Current Price$42.52

Upside / Downside-67.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $943.20M

Target EV/EBITDA multipleCurrent: 7.3×

Net Debt($B)Default: $2.89B

Results

Implied Equity Value / share$42.52

Current Price$42.52

Upside / Downside+0.0%

Implied EV$6.90B

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

Mult \ Net Debt	$893.50M	$1.89B	$2.89B	$3.89B	$4.89B
3.3x	$23.72	$13.11	$2.50	$-8.10	$-18.71
5.3x	$43.73	$33.12	$22.51	$11.91	$1.30
7.3x	$63.74	$53.13	$42.52	$31.91	$21.31
9.3x	$83.74	$73.14	$62.53	$51.92	$41.32
11.3x	$103.75	$93.15	$82.54	$71.93	$61.33

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