CNXN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($61.12)
DCF	$43.39	-29.0%
Graham Number	$51.53	-15.7%
Reverse DCF	—	implied g: 13.6%
DDM	$16.48	-73.0%
EV/EBITDA	$61.12	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $39.21M

Near-term growth (yrs 1–5)(%)Rev: -0.8% / EPS: 4.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.91%

Computed WACC: 8.91%

Cost of equity (Re)8.92%(Rf 4.30% + β 0.84 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)99.88%

Debt weight (D/V)0.12%

Results

Intrinsic Value / share$43.78

Current Price$61.12

Upside / Downside-28.4%

Net Debt (used)-$404.89M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$43.62	$49.19	$55.68	$63.18	$71.82
8.0%	$38.72	$43.20	$48.41	$54.44	$61.36
9.0%	$35.32	$39.06	$43.39	$48.39	$54.13
10.0%	$32.83	$36.01	$39.70	$43.96	$48.84
11.0%	$30.92	$33.69	$36.89	$40.57	$44.80

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.27

Book Value / share($)Yahoo: $36.09

Results

Graham Number$51.53

Current Price$61.12

Margin of Safety-15.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.91%

Terminal growth rate(%)

Computed WACC: 8.91%

Cost of equity (Re)8.92%(Rf 4.30% + β 0.84 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)99.88%

Debt weight (D/V)0.12%

Results

Current Price$61.12

Implied Near-term FCF Growth13.3%

Historical Revenue Growth-0.8%

Historical Earnings Growth4.0%

Base FCF (TTM)$39.21M

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: $0.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$16.48

Current Price$61.12

Upside / Downside-73.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $117.00M

Target EV/EBITDA multipleCurrent: 9.7×

Net Debt($B)Default: -$404.89M

Results

Implied Equity Value / share$61.12

Current Price$61.12

Upside / Downside-0.0%

Implied EV$1.14B

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

Mult \ Net Debt	-$2.40B	-$1.40B	-$404.89M	$595.11M	$1.60B
5.7x	$121.92	$82.23	$42.55	$2.86	$-36.82
7.7x	$131.20	$91.52	$51.83	$12.15	$-27.54
9.7x	$140.49	$100.80	$61.12	$21.43	$-18.25
11.7x	$149.78	$110.09	$70.41	$30.72	$-8.96
13.7x	$159.06	$119.38	$79.69	$40.01	$0.32

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