DDS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($607.44)
DCF	$803.06	+32.2%
Graham Number	$305.69	-49.7%
Reverse DCF	—	implied g: -0.1%
DDM	$24.72	-95.9%
EV/EBITDA	$816.58	+34.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $501.88M

Near-term growth (yrs 1–5)(%)Rev: -3.0% / EPS: -3.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.86%

Computed WACC: 10.86%

Cost of equity (Re)11.49%(Rf 4.30% + β 1.31 × 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)94.44%

Debt weight (D/V)5.56%

Results

Intrinsic Value / share$632.36

Current Price$607.44

Upside / Downside+4.1%

Net Debt (used)-$515.40M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$809.58	$964.32	$1144.35	$1352.70	$1592.68
8.0%	$673.42	$797.97	$942.65	$1109.87	$1302.25
9.0%	$579.07	$682.78	$803.06	$941.91	$1101.45
10.0%	$509.81	$598.28	$700.74	$818.87	$954.43
11.0%	$456.78	$533.64	$622.54	$724.88	$842.20

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $36.45

Book Value / share($)Yahoo: $113.94

Results

Graham Number$305.69

Current Price$607.44

Margin of Safety-49.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.86%

Terminal growth rate(%)

Computed WACC: 10.86%

Cost of equity (Re)11.49%(Rf 4.30% + β 1.31 × 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)94.44%

Debt weight (D/V)5.56%

Results

Current Price$607.44

Implied Near-term FCF Growth4.2%

Historical Revenue Growth-3.0%

Historical Earnings Growth-3.1%

Base FCF (TTM)$501.88M

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: $1.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$24.72

Current Price$607.44

Upside / Downside-95.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $868.00M

Target EV/EBITDA multipleCurrent: 10.3×

Net Debt($B)Default: -$515.40M

Results

Implied Equity Value / share$816.58

Current Price$607.44

Upside / Downside+34.4%

Implied EV$8.97B

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

Mult \ Net Debt	-$2.52B	-$1.52B	-$515.40M	$484.60M	$1.48B
6.3x	$689.83	$603.73	$517.62	$431.52	$345.42
8.3x	$839.31	$753.21	$667.10	$581.00	$494.89
10.3x	$988.79	$902.69	$816.58	$730.48	$644.37
12.3x	$1138.27	$1052.16	$966.06	$879.95	$793.85
14.3x	$1287.75	$1201.64	$1115.54	$1029.43	$943.33

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