EHC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($108.06)
DCF	$106.13	-1.8%
Graham Number	$55.18	-48.9%
Reverse DCF	—	implied g: 21.5%
DDM	$15.66	-85.5%
EV/EBITDA	$115.80	+7.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $296.79M

Near-term growth (yrs 1–5)(%)Rev: 9.9% / EPS: 21.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.91%

Computed WACC: 5.91%

Cost of equity (Re)7.38%(Rf 4.30% + β 0.56 × 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)80.02%

Debt weight (D/V)19.98%

Results

Intrinsic Value / share$246.89

Current Price$108.06

Upside / Downside+128.5%

Net Debt (used)$2.64B

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

WACC \ Near-term	13.2%	17.2%	21.2%	25.2%	29.2%
7.0%	$118.67	$144.87	$174.81	$208.88	$247.50
8.0%	$89.69	$110.42	$134.10	$161.02	$191.52
9.0%	$69.77	$86.76	$106.13	$128.15	$153.08
10.0%	$55.28	$69.54	$85.80	$104.26	$125.14
11.0%	$44.29	$56.49	$70.39	$86.15	$103.98

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.55

Book Value / share($)Yahoo: $24.38

Results

Graham Number$55.18

Current Price$108.06

Margin of Safety-48.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.91%

Terminal growth rate(%)

Computed WACC: 5.91%

Cost of equity (Re)7.38%(Rf 4.30% + β 0.56 × 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)80.02%

Debt weight (D/V)19.98%

Results

Current Price$108.06

Implied Near-term FCF Growth9.7%

Historical Revenue Growth9.9%

Historical Earnings Growth21.2%

Base FCF (TTM)$296.79M

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$108.06

Upside / Downside-85.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.38B

Target EV/EBITDA multipleCurrent: 10.3×

Net Debt($B)Default: $2.64B

Results

Implied Equity Value / share$115.80

Current Price$108.06

Upside / Downside+7.2%

Implied EV$14.22B

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

Mult \ Net Debt	$641.70M	$1.64B	$2.64B	$3.64B	$4.64B
6.3x	$80.56	$70.56	$60.56	$50.56	$40.56
8.3x	$108.18	$98.18	$88.18	$78.18	$68.18
10.3x	$135.80	$125.80	$115.80	$105.80	$95.80
12.3x	$163.42	$153.42	$143.42	$133.42	$123.42
14.3x	$191.04	$181.04	$171.04	$161.04	$151.04

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