DRH — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($9.97)
DCF	$18.19	+82.4%
Graham Number	$8.39	-15.9%
Reverse DCF	—	implied g: -2.2%
DDM	$7.42	-25.6%
EV/EBITDA	$10.01	+0.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $276.57M

Near-term growth (yrs 1–5)(%)Rev: -1.6% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.14%

Computed WACC: 6.14%

Cost of equity (Re)9.82%(Rf 4.30% + β 1.00 × 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)62.56%

Debt weight (D/V)37.44%

Results

Intrinsic Value / share$37.15

Current Price$9.97

Upside / Downside+272.6%

Net Debt (used)$1.15B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$18.39	$23.26	$28.91	$35.46	$43.00
8.0%	$14.12	$18.03	$22.58	$27.83	$33.87
9.0%	$11.15	$14.41	$18.19	$22.55	$27.57
10.0%	$8.98	$11.76	$14.98	$18.69	$22.95
11.0%	$7.31	$9.73	$12.52	$15.73	$19.42

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.44

Book Value / share($)Yahoo: $7.11

Results

Graham Number$8.39

Current Price$9.97

Margin of Safety-15.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.14%

Terminal growth rate(%)

Computed WACC: 6.14%

Cost of equity (Re)9.82%(Rf 4.30% + β 1.00 × 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)62.56%

Debt weight (D/V)37.44%

Results

Current Price$9.97

Implied Near-term FCF Growth-10.4%

Historical Revenue Growth-1.6%

Historical Earnings Growth—

Base FCF (TTM)$276.57M

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: $0.36

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$7.42

Current Price$9.97

Upside / Downside-25.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $277.20M

Target EV/EBITDA multipleCurrent: 11.5×

Net Debt($B)Default: $1.15B

Results

Implied Equity Value / share$10.01

Current Price$9.97

Upside / Downside+0.5%

Implied EV$3.19B

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

Mult \ Net Debt	$1.15B	$1.15B	$1.15B	$1.15B	$1.15B
7.5x	$4.57	$4.57	$4.57	$4.57	$4.57
9.5x	$7.29	$7.29	$7.29	$7.29	$7.29
11.5x	$10.01	$10.01	$10.01	$10.01	$10.01
13.5x	$12.74	$12.74	$12.74	$12.74	$12.74
15.5x	$15.46	$15.46	$15.46	$15.46	$15.46

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