DLX — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($27.84)
DCF	$40.81	+46.6%
Graham Number	$24.75	-11.1%
Reverse DCF	—	implied g: 1.7%
DDM	$24.72	-11.2%
EV/EBITDA	$27.89	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $188.45M

Near-term growth (yrs 1–5)(%)Rev: 2.8% / EPS: -7.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.97%

Computed WACC: 8.97%

Cost of equity (Re)11.72%(Rf 4.30% + β 1.35 × ERP 5.50%)

Cost of debt (Rd)8.47%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)45.37%

Debt weight (D/V)54.63%

Results

Intrinsic Value / share$41.15

Current Price$27.84

Upside / Downside+47.8%

Net Debt (used)$1.47B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$41.44	$56.43	$73.87	$94.06	$117.31
8.0%	$28.24	$40.31	$54.33	$70.53	$89.17
9.0%	$19.10	$29.15	$40.81	$54.26	$69.72
10.0%	$12.39	$20.96	$30.89	$42.34	$55.47
11.0%	$7.25	$14.70	$23.31	$33.23	$44.60

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.80

Book Value / share($)Yahoo: $15.12

Results

Graham Number$24.75

Current Price$27.84

Margin of Safety-11.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.97%

Terminal growth rate(%)

Computed WACC: 8.97%

Cost of equity (Re)11.72%(Rf 4.30% + β 1.35 × ERP 5.50%)

Cost of debt (Rd)8.47%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)45.37%

Debt weight (D/V)54.63%

Results

Current Price$27.84

Implied Near-term FCF Growth1.6%

Historical Revenue Growth2.8%

Historical Earnings Growth-7.0%

Base FCF (TTM)$188.45M

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$27.84

Upside / Downside-11.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $397.10M

Target EV/EBITDA multipleCurrent: 6.9×

Net Debt($B)Default: $1.47B

Results

Implied Equity Value / share$27.89

Current Price$27.84

Upside / Downside+0.2%

Implied EV$2.73B

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

Mult \ Net Debt	$1.47B	$1.47B	$1.47B	$1.47B	$1.47B
2.9x	$-7.40	$-7.40	$-7.40	$-7.40	$-7.40
4.9x	$10.25	$10.25	$10.25	$10.25	$10.25
6.9x	$27.89	$27.89	$27.89	$27.89	$27.89
8.9x	$45.54	$45.54	$45.54	$45.54	$45.54
10.9x	$63.18	$63.18	$63.18	$63.18	$63.18

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