DGICA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($17.69)
DCF	$0.98	-94.5%
Graham Number	$29.22	+65.2%
Reverse DCF	—	—
DDM	$15.04	-15.0%
EV/EBITDA	$20.95	+18.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: —

Near-term growth (yrs 1–5)(%)Rev: -3.9% / EPS: -33.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.21%

Computed WACC: 4.21%

Cost of equity (Re)4.32%(Rf 4.30% + β 0.00 × ERP 5.50%)

Cost of debt (Rd)2.70%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)94.88%

Debt weight (D/V)5.12%

Results

Intrinsic Value / share$0.98

Current Price$17.69

Upside / Downside-94.5%

Net Debt (used)-$30.50M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$0.98	$0.98	$0.98	$0.98	$0.98
8.0%	$0.98	$0.98	$0.98	$0.98	$0.98
9.0%	$0.98	$0.98	$0.98	$0.98	$0.98
10.0%	$0.98	$0.98	$0.98	$0.98	$0.98
11.0%	$0.98	$0.98	$0.98	$0.98	$0.98

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.18

Book Value / share($)Yahoo: $17.41

Results

Graham Number$29.22

Current Price$17.69

Margin of Safety+65.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.21%

Terminal growth rate(%)

Computed WACC: 4.21%

Cost of equity (Re)4.32%(Rf 4.30% + β 0.00 × ERP 5.50%)

Cost of debt (Rd)2.70%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)94.88%

Debt weight (D/V)5.12%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$17.69

Implied Near-term FCF Growth—

Historical Revenue Growth-3.9%

Historical Earnings Growth-33.3%

Base FCF (TTM)—

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: $0.73

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$15.04

Current Price$17.69

Upside / Downside-15.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $102.48M

Target EV/EBITDA multipleCurrent: 6.1×

Net Debt($B)Default: -$30.50M

Results

Implied Equity Value / share$20.95

Current Price$17.69

Upside / Downside+18.4%

Implied EV$620.29M

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

Mult \ Net Debt	-$2.03B	-$1.03B	-$30.50M	$969.50M	$1.97B
2.1x	$72.14	$39.95	$7.75	$-24.44	$-56.63
4.1x	$78.73	$46.54	$14.35	$-17.84	$-50.03
6.1x	$85.33	$53.14	$20.95	$-11.24	$-43.43
8.1x	$91.93	$59.74	$27.55	$-4.64	$-36.83
10.1x	$98.53	$66.34	$34.14	$1.95	$-30.24

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