COST — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($1002.77)
DCF	$432.34	-56.9%
Graham Number	$169.25	-83.1%
Reverse DCF	—	implied g: 26.7%
DDM	$107.12	-89.3%
EV/EBITDA	$1002.78	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $7.17B

Near-term growth (yrs 1–5)(%)Rev: 8.3% / EPS: 11.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.62%

Computed WACC: 9.62%

Cost of equity (Re)9.76%(Rf 4.30% + β 0.99 × ERP 5.50%)

Cost of debt (Rd)2.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.20%

Debt weight (D/V)1.80%

Results

Intrinsic Value / share$393.78

Current Price$1002.77

Upside / Downside-60.7%

Net Debt (used)-$9.01B

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

WACC \ Near-term	3.4%	7.4%	11.4%	15.4%	19.4%
7.0%	$450.60	$533.97	$630.26	$740.91	$867.52
8.0%	$369.72	$436.31	$513.13	$601.32	$702.14
9.0%	$313.88	$368.92	$432.34	$505.08	$588.15
10.0%	$273.06	$319.68	$373.34	$434.82	$504.98
11.0%	$241.94	$282.17	$328.42	$381.36	$441.71

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $18.65

Book Value / share($)Yahoo: $68.26

Results

Graham Number$169.25

Current Price$1002.77

Margin of Safety-83.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.62%

Terminal growth rate(%)

Computed WACC: 9.62%

Cost of equity (Re)9.76%(Rf 4.30% + β 0.99 × ERP 5.50%)

Cost of debt (Rd)2.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.20%

Debt weight (D/V)1.80%

Results

Current Price$1002.77

Implied Near-term FCF Growth28.8%

Historical Revenue Growth8.3%

Historical Earnings Growth11.4%

Base FCF (TTM)$7.17B

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$1002.77

Upside / Downside-89.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $13.13B

Target EV/EBITDA multipleCurrent: 33.2×

Net Debt($B)Default: -$9.01B

Results

Implied Equity Value / share$1002.78

Current Price$1002.77

Upside / Downside+0.0%

Implied EV$436.09B

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

Mult \ Net Debt	-$13.01B	-$11.01B	-$9.01B	-$7.01B	-$5.01B
29.2x	$893.51	$889.01	$884.50	$879.99	$875.49
31.2x	$952.65	$948.14	$943.64	$939.13	$934.63
33.2x	$1011.79	$1007.28	$1002.78	$998.27	$993.77
35.2x	$1070.93	$1066.42	$1061.92	$1057.41	$1052.90
37.2x	$1130.07	$1125.56	$1121.06	$1116.55	$1112.04

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