ED — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($112.06)
DCF	$-82.99	-174.1%
Graham Number	$92.61	-17.4%
Reverse DCF	—	—
DDM	$70.86	-36.8%
EV/EBITDA	$112.15	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$145.25M

Near-term growth (yrs 1–5)(%)Rev: 8.9% / EPS: -8.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.37%

Computed WACC: 5.37%

Cost of equity (Re)6.43%(Rf 4.30% + β 0.39 × ERP 5.50%)

Cost of debt (Rd)4.88%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)58.77%

Debt weight (D/V)41.23%

Results

Intrinsic Value / share$-94.91

Current Price$112.06

Upside / Downside-184.7%

Net Debt (used)$26.75B

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

WACC \ Near-term	0.9%	4.9%	8.9%	12.9%	16.9%
7.0%	$-83.28	$-85.08	$-87.18	$-89.59	$-92.35
8.0%	$-81.59	$-83.03	$-84.71	$-86.63	$-88.84
9.0%	$-80.42	$-81.62	$-83.00	$-84.60	$-86.42
10.0%	$-79.56	$-80.58	$-81.76	$-83.11	$-84.65
11.0%	$-78.91	$-79.79	$-80.81	$-81.97	$-83.30

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.69

Book Value / share($)Yahoo: $66.99

Results

Graham Number$92.61

Current Price$112.06

Margin of Safety-17.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.37%

Terminal growth rate(%)

Computed WACC: 5.37%

Cost of equity (Re)6.43%(Rf 4.30% + β 0.39 × ERP 5.50%)

Cost of debt (Rd)4.88%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)58.77%

Debt weight (D/V)41.23%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$112.06

Implied Near-term FCF Growth—

Historical Revenue Growth8.9%

Historical Earnings Growth-8.2%

Base FCF (TTM)-$145.25M

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: $3.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$70.86

Current Price$112.06

Upside / Downside-36.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.02B

Target EV/EBITDA multipleCurrent: 11.2×

Net Debt($B)Default: $26.75B

Results

Implied Equity Value / share$112.15

Current Price$112.06

Upside / Downside+0.1%

Implied EV$67.23B

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

Mult \ Net Debt	$12.75B	$19.75B	$26.75B	$33.75B	$40.75B
7.2x	$84.20	$64.81	$45.41	$26.02	$6.63
9.2x	$117.57	$98.18	$78.78	$59.39	$39.99
11.2x	$150.94	$131.55	$112.15	$92.76	$73.36
13.2x	$184.31	$164.91	$145.52	$126.13	$106.73
15.2x	$217.68	$198.28	$178.89	$159.50	$140.10

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