DNOW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($12.44)
DCF	$-1875.73	-15178.2%
Graham Number	—	—
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	$12.48	+0.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$709.63M

Near-term growth (yrs 1–5)(%)Rev: 68.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.97%

Computed WACC: 6.97%

Cost of equity (Re)8.82%(Rf 4.30% + β 0.82 × 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)79.04%

Debt weight (D/V)20.96%

Results

Intrinsic Value / share$-3045.56

Current Price$12.44

Upside / Downside-24582.0%

Net Debt (used)$450.00M

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

WACC \ Near-term	60.0%	64.0%	68.0%	72.0%	76.0%
7.0%	$-2371.22	$-2679.98	$-3020.23	$-3394.32	$-3804.71
8.0%	$-1837.48	$-2076.16	$-2339.16	$-2628.27	$-2945.42
9.0%	$-1474.28	$-1665.29	$-1875.73	$-2107.05	$-2360.76
10.0%	$-1212.95	$-1369.67	$-1542.31	$-1732.05	$-1940.15
11.0%	$-1017.15	$-1148.20	$-1292.53	$-1451.14	$-1625.08

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.76

Book Value / share($)Yahoo: $12.00

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$12.44

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.97%

Terminal growth rate(%)

Computed WACC: 6.97%

Cost of equity (Re)8.82%(Rf 4.30% + β 0.82 × 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)79.04%

Debt weight (D/V)20.96%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$12.44

Implied Near-term FCF Growth—

Historical Revenue Growth68.0%

Historical Earnings Growth—

Base FCF (TTM)-$709.63M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$12.44

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $171.00M

Target EV/EBITDA multipleCurrent: 16.2×

Net Debt($B)Default: $450.00M

Results

Implied Equity Value / share$12.48

Current Price$12.44

Upside / Downside+0.3%

Implied EV$2.77B

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

Mult \ Net Debt	-$1.55B	-$550.00M	$450.00M	$1.45B	$2.45B
12.2x	$19.55	$14.18	$8.81	$3.43	$-1.94
14.2x	$21.39	$16.02	$10.64	$5.27	$-0.10
16.2x	$23.23	$17.85	$12.48	$7.11	$1.74
18.2x	$25.06	$19.69	$14.32	$8.95	$3.57
20.2x	$26.90	$21.53	$16.16	$10.78	$5.41

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