ELS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($68.37)
DCF	$22.67	-66.8%
Graham Number	$20.24	-70.4%
Reverse DCF	—	implied g: 18.2%
DDM	$44.70	-34.6%
EV/EBITDA	$68.67	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $440.62M

Near-term growth (yrs 1–5)(%)Rev: 0.5% / EPS: 3.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.48%

Computed WACC: 7.48%

Cost of equity (Re)8.54%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)4.00%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)80.36%

Debt weight (D/V)19.64%

Results

Intrinsic Value / share$34.99

Current Price$68.37

Upside / Downside-48.8%

Net Debt (used)$3.34B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$23.01	$31.15	$40.61	$51.57	$64.18
8.0%	$15.85	$22.40	$30.01	$38.80	$48.91
9.0%	$10.89	$16.34	$22.67	$29.97	$38.36
10.0%	$7.25	$11.90	$17.29	$23.50	$30.63
11.0%	$4.46	$8.50	$13.18	$18.56	$24.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.01

Book Value / share($)Yahoo: $9.06

Results

Graham Number$20.24

Current Price$68.37

Margin of Safety-70.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.48%

Terminal growth rate(%)

Computed WACC: 7.48%

Cost of equity (Re)8.54%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)4.00%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)80.36%

Debt weight (D/V)19.64%

Results

Current Price$68.37

Implied Near-term FCF Growth13.2%

Historical Revenue Growth0.5%

Historical Earnings Growth3.2%

Base FCF (TTM)$440.62M

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: $2.17

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$44.70

Current Price$68.37

Upside / Downside-34.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $742.98M

Target EV/EBITDA multipleCurrent: 22.4×

Net Debt($B)Default: $3.34B

Results

Implied Equity Value / share$68.67

Current Price$68.37

Upside / Downside+0.4%

Implied EV$16.66B

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

Mult \ Net Debt	$1.34B	$2.34B	$3.34B	$4.34B	$5.34B
18.4x	$63.66	$58.50	$53.35	$48.19	$43.03
20.4x	$71.32	$66.16	$61.01	$55.85	$50.69
22.4x	$78.98	$73.83	$68.67	$63.51	$58.36
24.4x	$86.65	$81.49	$76.33	$71.18	$66.02
26.4x	$94.31	$89.15	$83.99	$78.84	$73.68

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