DE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($630.88)
DCF	$219.94	-65.1%
Graham Number	$201.21	-68.1%
Reverse DCF	—	implied g: 24.8%
DDM	$133.49	-78.8%
EV/EBITDA	$628.83	-0.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.20B

Near-term growth (yrs 1–5)(%)Rev: 13.0% / EPS: -24.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.07%

Computed WACC: 8.07%

Cost of equity (Re)9.59%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)5.02%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)73.03%

Debt weight (D/V)26.97%

Results

Intrinsic Value / share$299.07

Current Price$630.88

Upside / Downside-52.6%

Net Debt (used)$57.91B

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

WACC \ Near-term	5.0%	9.0%	13.0%	17.0%	21.0%
7.0%	$242.87	$330.34	$431.16	$546.84	$678.98
8.0%	$156.07	$225.81	$306.12	$398.17	$503.24
9.0%	$96.19	$153.74	$219.94	$295.75	$382.20
10.0%	$52.46	$101.13	$157.05	$221.03	$293.93
11.0%	$19.15	$61.08	$109.21	$164.22	$226.85

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $18.48

Book Value / share($)Yahoo: $97.37

Results

Graham Number$201.21

Current Price$630.88

Margin of Safety-68.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.07%

Terminal growth rate(%)

Computed WACC: 8.07%

Cost of equity (Re)9.59%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)5.02%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)73.03%

Debt weight (D/V)26.97%

Results

Current Price$630.88

Implied Near-term FCF Growth21.6%

Historical Revenue Growth13.0%

Historical Earnings Growth-24.1%

Base FCF (TTM)$4.20B

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: $6.48

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$133.49

Current Price$630.88

Upside / Downside-78.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.59B

Target EV/EBITDA multipleCurrent: 26.6×

Net Debt($B)Default: $57.91B

Results

Implied Equity Value / share$628.83

Current Price$630.88

Upside / Downside-0.3%

Implied EV$228.36B

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

Mult \ Net Debt	$29.91B	$43.91B	$57.91B	$71.91B	$85.91B
22.6x	$605.39	$553.75	$502.10	$450.45	$398.81
24.6x	$668.76	$617.11	$565.46	$513.82	$462.17
26.6x	$732.12	$680.47	$628.83	$577.18	$525.53
28.6x	$795.48	$743.83	$692.19	$640.54	$588.90
30.6x	$858.84	$807.20	$755.55	$703.90	$652.26

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