ECL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($308.35)
DCF	$194.75	-36.8%
Graham Number	$61.99	-79.9%
Reverse DCF	—	implied g: 25.4%
DDM	$56.86	-81.6%
EV/EBITDA	$312.85	+1.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.64B

Near-term growth (yrs 1–5)(%)Rev: 17.8% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.28%

Computed WACC: 9.28%

Cost of equity (Re)9.76%(Rf 4.30% + β 0.99 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.58%

Debt weight (D/V)7.42%

Results

Intrinsic Value / share$184.74

Current Price$308.35

Upside / Downside-40.1%

Net Debt (used)$5.60B

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

WACC \ Near-term	9.8%	13.8%	17.8%	21.8%	25.8%
7.0%	$211.44	$254.26	$303.36	$359.43	$423.17
8.0%	$166.09	$200.07	$239.01	$283.43	$333.91
9.0%	$134.88	$162.79	$194.75	$231.18	$272.54
10.0%	$112.13	$135.64	$162.52	$193.14	$227.88
11.0%	$94.86	$115.02	$138.06	$164.28	$194.02

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.28

Book Value / share($)Yahoo: $23.46

Results

Graham Number$61.99

Current Price$308.35

Margin of Safety-79.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.28%

Terminal growth rate(%)

Computed WACC: 9.28%

Cost of equity (Re)9.76%(Rf 4.30% + β 0.99 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.58%

Debt weight (D/V)7.42%

Results

Current Price$308.35

Implied Near-term FCF Growth26.3%

Historical Revenue Growth17.8%

Historical Earnings Growth—

Base FCF (TTM)$1.64B

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: $2.76

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$56.86

Current Price$308.35

Upside / Downside-81.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.93B

Target EV/EBITDA multipleCurrent: 23.9×

Net Debt($B)Default: $5.60B

Results

Implied Equity Value / share$312.85

Current Price$308.35

Upside / Downside+1.5%

Implied EV$93.81B

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

Mult \ Net Debt	$3.60B	$4.60B	$5.60B	$6.60B	$7.60B
19.9x	$264.22	$260.68	$257.13	$253.58	$250.04
21.9x	$292.08	$288.54	$284.99	$281.44	$277.90
23.9x	$319.95	$316.40	$312.85	$309.31	$305.76
25.9x	$347.81	$344.26	$340.71	$337.17	$333.62
27.9x	$375.67	$372.12	$368.57	$365.03	$361.48

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