DGICB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($16.69)
DCF	$5.47	-67.2%
Graham Number	$29.22	+75.1%
Reverse DCF	—	—
DDM	$13.60	-18.5%
EV/EBITDA	$110.10	+559.7%

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: 4.22%

Computed WACC: 4.22%

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)95.39%

Debt weight (D/V)4.61%

Results

Intrinsic Value / share$5.47

Current Price$16.69

Upside / Downside-67.2%

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%	$5.47	$5.47	$5.47	$5.47	$5.47
8.0%	$5.47	$5.47	$5.47	$5.47	$5.47
9.0%	$5.47	$5.47	$5.47	$5.47	$5.47
10.0%	$5.47	$5.47	$5.47	$5.47	$5.47
11.0%	$5.47	$5.47	$5.47	$5.47	$5.47

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$16.69

Margin of Safety+75.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.22%

Terminal growth rate(%)

Computed WACC: 4.22%

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)95.39%

Debt weight (D/V)4.61%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$16.69

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: $0.66

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$13.60

Current Price$16.69

Upside / Downside-18.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $102.48M

Target EV/EBITDA multipleCurrent: 5.7×

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

Results

Implied Equity Value / share$110.10

Current Price$16.69

Upside / Downside+559.7%

Implied EV$583.50M

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

Mult \ Net Debt	-$2.03B	-$1.03B	-$30.50M	$969.50M	$1.97B
1.7x	$395.23	$215.91	$36.60	$-142.72	$-322.03
3.7x	$431.98	$252.66	$73.35	$-105.97	$-285.28
5.7x	$468.73	$289.42	$110.10	$-69.21	$-248.53
7.7x	$505.48	$326.17	$146.85	$-32.46	$-211.78
9.7x	$542.23	$362.92	$183.60	$4.29	$-175.03

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