EBAY — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($88.78)
DCF	$42.42	-52.2%
Graham Number	$31.39	-64.6%
Reverse DCF	—	implied g: 26.3%
DDM	$25.54	-71.2%
EV/EBITDA	$88.78	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $741.12M

Near-term growth (yrs 1–5)(%)Rev: 15.0% / EPS: -18.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.04%

Computed WACC: 10.04%

Cost of equity (Re)11.84%(Rf 4.30% + β 1.37 × 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)84.82%

Debt weight (D/V)15.18%

Results

Intrinsic Value / share$34.51

Current Price$88.78

Upside / Downside-61.1%

Net Debt (used)$4.26B

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

WACC \ Near-term	7.0%	11.0%	15.0%	19.0%	23.0%
7.0%	$45.71	$56.15	$68.15	$81.89	$97.55
8.0%	$35.07	$43.37	$52.91	$63.83	$76.26
9.0%	$27.73	$34.57	$42.42	$51.39	$61.60
10.0%	$22.38	$28.15	$34.77	$42.33	$50.93
11.0%	$18.31	$23.27	$28.96	$35.45	$42.82

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.26

Book Value / share($)Yahoo: $10.28

Results

Graham Number$31.39

Current Price$88.78

Margin of Safety-64.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.04%

Terminal growth rate(%)

Computed WACC: 10.04%

Cost of equity (Re)11.84%(Rf 4.30% + β 1.37 × 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)84.82%

Debt weight (D/V)15.18%

Results

Current Price$88.78

Implied Near-term FCF Growth29.6%

Historical Revenue Growth15.0%

Historical Earnings Growth-18.4%

Base FCF (TTM)$741.12M

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: $1.24

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$25.54

Current Price$88.78

Upside / Downside-71.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.71B

Target EV/EBITDA multipleCurrent: 16.2×

Net Debt($B)Default: $4.26B

Results

Implied Equity Value / share$88.78

Current Price$88.78

Upside / Downside+0.0%

Implied EV$44.04B

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

Mult \ Net Debt	$2.26B	$3.26B	$4.26B	$5.26B	$6.26B
12.2x	$69.01	$66.78	$64.55	$62.32	$60.09
14.2x	$81.13	$78.90	$76.67	$74.43	$72.20
16.2x	$93.25	$91.01	$88.78	$86.55	$84.32
18.2x	$105.36	$103.13	$100.90	$98.67	$96.43
20.2x	$117.48	$115.25	$113.01	$110.78	$108.55

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