DOC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($17.57)
DCF	$52127198653682.09	+296767427575659.1%
Graham Number	$4.93	-71.9%
Reverse DCF	—	implied g: 6.2%
DDM	$25.13	+43.1%
EV/EBITDA	$18.83	+7.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.16B

Near-term growth (yrs 1–5)(%)Rev: 3.1% / EPS: 2448.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.85%

Computed WACC: 6.85%

Cost of equity (Re)10.39%(Rf 4.30% + β 1.11 × ERP 5.50%)

Cost of debt (Rd)3.29%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)54.62%

Debt weight (D/V)45.38%

Results

Intrinsic Value / share$93022612317358.27

Current Price$17.57

Upside / Downside+529590733375124.9%

Net Debt (used)$9.67B

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

WACC \ Near-term	2440.4%	2444.4%	2448.4%	2452.4%	2456.4%
7.0%	$87419449751462.91	$88109854230579.42	$88804613870779.22	$89503749244335.80	$90207280988205.14
8.0%	$65834726616105.20	$66354663429359.63	$66877880071529.61	$67404392035391.66	$67934214862434.08
9.0%	$51314124625059.78	$51719383426805.64	$52127198653682.09	$52537582381356.56	$52950546723464.34
10.0%	$40996885437582.73	$41320662736364.99	$41646482464378.66	$41974354269352.44	$42304287829349.06
11.0%	$33371704186129.58	$33635260798216.38	$33900479959624.68	$34167369523661.99	$34435937368327.89

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.10

Book Value / share($)Yahoo: $10.79

Results

Graham Number$4.93

Current Price$17.57

Margin of Safety-71.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.85%

Terminal growth rate(%)

Computed WACC: 6.85%

Cost of equity (Re)10.39%(Rf 4.30% + β 1.11 × ERP 5.50%)

Cost of debt (Rd)3.29%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)54.62%

Debt weight (D/V)45.38%

Results

Current Price$17.57

Implied Near-term FCF Growth-0.3%

Historical Revenue Growth3.1%

Historical Earnings Growth2448.4%

Base FCF (TTM)$1.16B

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: $1.22

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$25.13

Current Price$17.57

Upside / Downside+43.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.56B

Target EV/EBITDA multipleCurrent: 14.6×

Net Debt($B)Default: $9.67B

Results

Implied Equity Value / share$18.83

Current Price$17.57

Upside / Downside+7.2%

Implied EV$22.76B

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

Mult \ Net Debt	$5.67B	$7.67B	$9.67B	$11.67B	$13.67B
10.6x	$15.64	$12.76	$9.88	$7.00	$4.13
12.6x	$20.11	$17.24	$14.36	$11.48	$8.60
14.6x	$24.59	$21.71	$18.83	$15.96	$13.08
16.6x	$29.07	$26.19	$23.31	$20.43	$17.56
18.6x	$33.54	$30.67	$27.79	$24.91	$22.03

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