EA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($201.06)
DCF	$157.66	-21.6%
Graham Number	$38.44	-80.9%
Reverse DCF	—	implied g: 9.2%
DDM	$15.66	-92.2%
EV/EBITDA	$201.06	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.21B

Near-term growth (yrs 1–5)(%)Rev: 1.0% / EPS: -68.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.13%

Computed WACC: 8.13%

Cost of equity (Re)8.40%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)2.59%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.73%

Debt weight (D/V)4.27%

Results

Intrinsic Value / share$181.90

Current Price$201.06

Upside / Downside-9.5%

Net Debt (used)-$657.00M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$158.99	$190.61	$227.39	$269.97	$319.01
8.0%	$131.17	$156.62	$186.18	$220.35	$259.66
9.0%	$111.89	$133.08	$157.66	$186.03	$218.63
10.0%	$97.73	$115.81	$136.75	$160.89	$188.59
11.0%	$86.90	$102.60	$120.77	$141.68	$165.65

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.67

Book Value / share($)Yahoo: $24.59

Results

Graham Number$38.44

Current Price$201.06

Margin of Safety-80.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.13%

Terminal growth rate(%)

Computed WACC: 8.13%

Cost of equity (Re)8.40%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)2.59%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.73%

Debt weight (D/V)4.27%

Results

Current Price$201.06

Implied Near-term FCF Growth6.7%

Historical Revenue Growth1.0%

Historical Earnings Growth-68.5%

Base FCF (TTM)$2.21B

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: $0.76

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$15.66

Current Price$201.06

Upside / Downside-92.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.34B

Target EV/EBITDA multipleCurrent: 36.9×

Net Debt($B)Default: -$657.00M

Results

Implied Equity Value / share$201.06

Current Price$201.06

Upside / Downside-0.0%

Implied EV$49.66B

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

Mult \ Net Debt	-$2.66B	-$1.66B	-$657.00M	$343.00M	$1.34B
32.9x	$187.55	$183.56	$179.56	$175.56	$171.57
34.9x	$198.30	$194.31	$190.31	$186.31	$182.32
36.9x	$209.05	$205.05	$201.06	$197.06	$193.07
38.9x	$219.80	$215.80	$211.81	$207.81	$203.82
40.9x	$230.55	$226.55	$222.56	$218.56	$214.57

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