CVS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($79.90)
DCF	$3329.44	+4067.0%
Graham Number	$43.02	-46.2%
Reverse DCF	—	implied g: 13.5%
DDM	$54.80	-31.4%
EV/EBITDA	$80.03	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.93B

Near-term growth (yrs 1–5)(%)Rev: 8.4% / EPS: 76.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 3.95%

Computed WACC: 3.95%

Cost of equity (Re)7.06%(Rf 4.30% + β 0.50 × 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)55.97%

Debt weight (D/V)44.03%

Results

Intrinsic Value / share$20373.22

Current Price$79.90

Upside / Downside+25398.4%

Net Debt (used)$69.35B

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

WACC \ Near-term	68.6%	72.6%	76.6%	80.6%	84.6%
7.0%	$4298.11	$4836.21	$5426.38	$6072.31	$6777.87
8.0%	$3307.91	$3722.92	$4178.04	$4676.13	$5220.16
9.0%	$2634.74	$2966.09	$3329.44	$3727.05	$4161.30
10.0%	$2150.89	$2422.12	$2719.52	$3044.93	$3400.30
11.0%	$1788.80	$2015.06	$2263.12	$2534.53	$2830.90

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.39

Book Value / share($)Yahoo: $59.18

Results

Graham Number$43.02

Current Price$79.90

Margin of Safety-46.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 3.95%

Terminal growth rate(%)

Computed WACC: 3.95%

Cost of equity (Re)7.06%(Rf 4.30% + β 0.50 × 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)55.97%

Debt weight (D/V)44.03%

Results

Current Price$79.90

Implied Near-term FCF Growth-9.2%

Historical Revenue Growth8.4%

Historical Earnings Growth76.6%

Base FCF (TTM)$5.93B

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: $2.66

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$54.80

Current Price$79.90

Upside / Downside-31.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $14.63B

Target EV/EBITDA multipleCurrent: 11.7×

Net Debt($B)Default: $69.35B

Results

Implied Equity Value / share$80.03

Current Price$79.90

Upside / Downside+0.2%

Implied EV$171.17B

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

Mult \ Net Debt	$35.35B	$52.35B	$69.35B	$86.35B	$103.35B
7.7x	$60.78	$47.41	$34.05	$20.69	$7.33
9.7x	$83.77	$70.40	$57.04	$43.68	$30.32
11.7x	$106.76	$93.40	$80.03	$66.67	$53.31
13.7x	$129.75	$116.39	$103.02	$89.66	$76.30
15.7x	$152.74	$139.38	$126.02	$112.65	$99.29

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