DXC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($12.59)
DCF	$8347.33	+66201.3%
Graham Number	$30.94	+145.7%
Reverse DCF	—	implied g: -14.0%
DDM	—	—
EV/EBITDA	$14.17	+12.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $824.50M

Near-term growth (yrs 1–5)(%)Rev: -1.0% / EPS: 96.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.53%

Computed WACC: 7.53%

Cost of equity (Re)10.26%(Rf 4.30% + β 1.08 × ERP 5.50%)

Cost of debt (Rd)7.78%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)33.65%

Debt weight (D/V)66.35%

Results

Intrinsic Value / share$11819.12

Current Price$12.59

Upside / Downside+93777.1%

Net Debt (used)$2.59B

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

WACC \ Near-term	88.8%	92.8%	96.8%	100.8%	104.8%
7.0%	$11105.27	$12330.19	$13660.86	$15104.00	$16666.58
8.0%	$8532.81	$9473.53	$10495.42	$11603.63	$12803.52
9.0%	$6787.08	$7534.96	$8347.33	$9228.28	$10182.08
10.0%	$5534.73	$6144.29	$6806.39	$7524.35	$8301.64
11.0%	$4599.53	$5105.83	$5655.73	$6252.00	$6897.51

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.30

Book Value / share($)Yahoo: $18.50

Results

Graham Number$30.94

Current Price$12.59

Margin of Safety+145.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.53%

Terminal growth rate(%)

Computed WACC: 7.53%

Cost of equity (Re)10.26%(Rf 4.30% + β 1.08 × ERP 5.50%)

Cost of debt (Rd)7.78%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)33.65%

Debt weight (D/V)66.35%

Results

Current Price$12.59

Implied Near-term FCF Growth-17.2%

Historical Revenue Growth-1.0%

Historical Earnings Growth96.8%

Base FCF (TTM)$824.50M

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$12.59

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.91B

Target EV/EBITDA multipleCurrent: 2.6×

Net Debt($B)Default: $2.59B

Results

Implied Equity Value / share$14.17

Current Price$12.59

Upside / Downside+12.5%

Implied EV$5.00B

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

Mult \ Net Debt	$592.00M	$1.59B	$2.59B	$3.59B	$4.59B
-1.4x	$-19.15	$-25.04	$-30.93	$-36.82	$-42.71
0.6x	$3.40	$-2.49	$-8.38	$-14.27	$-20.16
2.6x	$25.95	$20.06	$14.17	$8.28	$2.39
4.6x	$48.50	$42.61	$36.72	$30.83	$24.94
6.6x	$71.05	$65.16	$59.27	$53.38	$47.49

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