DHI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($154.56)
DCF	$-43.75	-128.3%
Graham Number	$142.92	-7.5%
Reverse DCF	—	—
DDM	$37.08	-76.0%
EV/EBITDA	$155.90	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$546.75M

Near-term growth (yrs 1–5)(%)Rev: -9.5% / EPS: -22.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.70%

Computed WACC: 10.70%

Cost of equity (Re)12.04%(Rf 4.30% + β 1.41 × 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)88.90%

Debt weight (D/V)11.10%

Results

Intrinsic Value / share$-36.82

Current Price$154.56

Upside / Downside-123.8%

Net Debt (used)$3.11B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-44.03	$-50.77	$-58.61	$-67.69	$-78.14
8.0%	$-38.10	$-43.53	$-49.83	$-57.11	$-65.49
9.0%	$-33.99	$-38.51	$-43.75	$-49.80	$-56.74
10.0%	$-30.98	$-34.83	$-39.29	$-44.44	$-50.34
11.0%	$-28.67	$-32.01	$-35.89	$-40.34	$-45.45

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.99

Book Value / share($)Yahoo: $82.60

Results

Graham Number$142.92

Current Price$154.56

Margin of Safety-7.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.70%

Terminal growth rate(%)

Computed WACC: 10.70%

Cost of equity (Re)12.04%(Rf 4.30% + β 1.41 × 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)88.90%

Debt weight (D/V)11.10%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$154.56

Implied Near-term FCF Growth—

Historical Revenue Growth-9.5%

Historical Earnings Growth-22.2%

Base FCF (TTM)-$546.75M

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: $1.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$37.08

Current Price$154.56

Upside / Downside-76.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.47B

Target EV/EBITDA multipleCurrent: 10.8×

Net Debt($B)Default: $3.11B

Results

Implied Equity Value / share$155.90

Current Price$154.56

Upside / Downside+0.9%

Implied EV$48.40B

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

Mult \ Net Debt	$1.11B	$2.11B	$3.11B	$4.11B	$5.11B
6.8x	$101.29	$97.85	$94.41	$90.96	$87.52
8.8x	$132.04	$128.60	$125.15	$121.71	$118.27
10.8x	$162.79	$159.34	$155.90	$152.46	$149.02
12.8x	$193.53	$190.09	$186.65	$183.21	$179.77
14.8x	$224.28	$220.84	$217.40	$213.96	$210.51

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