DD — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($49.64)
DCF	$570.12	+1048.5%
Graham Number	$12.68	-74.5%
Reverse DCF	—	implied g: -20.0%
DDM	$16.48	-66.8%
EV/EBITDA	$50.09	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $13.44B

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

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.78%

Computed WACC: 9.78%

Cost of equity (Re)10.43%(Rf 4.30% + β 1.11 × ERP 5.50%)

Cost of debt (Rd)7.40%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.76%

Debt weight (D/V)14.24%

Results

Intrinsic Value / share$507.61

Current Price$49.64

Upside / Downside+922.6%

Net Debt (used)$2.74B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$575.08	$692.73	$829.59	$988.01	$1170.46
8.0%	$471.56	$566.25	$676.25	$803.38	$949.65
9.0%	$399.82	$478.67	$570.12	$675.69	$796.99
10.0%	$347.16	$414.43	$492.33	$582.14	$685.21
11.0%	$306.85	$365.29	$432.87	$510.68	$599.88

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.21

Book Value / share($)Yahoo: $34.02

Results

Graham Number$12.68

Current Price$49.64

Margin of Safety-74.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.78%

Terminal growth rate(%)

Computed WACC: 9.78%

Cost of equity (Re)10.43%(Rf 4.30% + β 1.11 × ERP 5.50%)

Cost of debt (Rd)7.40%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.76%

Debt weight (D/V)14.24%

Results

Current Price$49.64

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth—

Historical Earnings Growth—

Base FCF (TTM)$13.44B

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$49.64

Upside / Downside-66.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.51B

Target EV/EBITDA multipleCurrent: 15.4×

Net Debt($B)Default: $2.74B

Results

Implied Equity Value / share$50.09

Current Price$49.64

Upside / Downside+0.9%

Implied EV$23.22B

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

Mult \ Net Debt	$738.00M	$1.74B	$2.74B	$3.74B	$4.74B
11.4x	$40.19	$37.75	$35.30	$32.86	$30.41
13.4x	$47.59	$45.14	$42.70	$40.25	$37.80
15.4x	$54.98	$52.54	$50.09	$47.65	$45.20
17.4x	$62.38	$59.93	$57.49	$55.04	$52.59
19.4x	$69.77	$67.33	$64.88	$62.44	$59.99

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