DOW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($30.60)
DCF	$-40.57	-232.6%
Graham Number	—	—
Reverse DCF	—	—
DDM	$36.05	+17.8%
EV/EBITDA	$32.71	+6.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$784.75M

Near-term growth (yrs 1–5)(%)Rev: -9.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.26%

Computed WACC: 6.26%

Cost of equity (Re)8.21%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)5.15%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)52.83%

Debt weight (D/V)47.17%

Results

Intrinsic Value / share$-54.73

Current Price$30.60

Upside / Downside-278.9%

Net Debt (used)$15.33B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-40.73	$-44.65	$-49.21	$-54.48	$-60.55
8.0%	$-37.29	$-40.44	$-44.10	$-48.33	$-53.20
9.0%	$-34.90	$-37.52	$-40.57	$-44.08	$-48.12
10.0%	$-33.15	$-35.39	$-37.98	$-40.97	$-44.40
11.0%	$-31.80	$-33.75	$-36.00	$-38.59	$-41.56

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-3.70

Book Value / share($)Yahoo: $22.32

Results

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

Graham Number—

Current Price$30.60

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.26%

Terminal growth rate(%)

Computed WACC: 6.26%

Cost of equity (Re)8.21%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)5.15%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)52.83%

Debt weight (D/V)47.17%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$30.60

Implied Near-term FCF Growth—

Historical Revenue Growth-9.1%

Historical Earnings Growth—

Base FCF (TTM)-$784.75M

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: $1.75

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$36.05

Current Price$30.60

Upside / Downside+17.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.70B

Target EV/EBITDA multipleCurrent: 14.4×

Net Debt($B)Default: $15.33B

Results

Implied Equity Value / share$32.71

Current Price$30.60

Upside / Downside+6.9%

Implied EV$38.80B

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

Mult \ Net Debt	$7.33B	$11.33B	$15.33B	$19.33B	$23.33B
10.4x	$28.79	$23.22	$17.64	$12.07	$6.49
12.4x	$36.32	$30.75	$25.17	$19.60	$14.03
14.4x	$43.86	$38.28	$32.71	$27.13	$21.56
16.4x	$51.39	$45.82	$40.24	$34.67	$29.09
18.4x	$58.93	$53.35	$47.78	$42.20	$36.63

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