EME — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($717.60)
DCF	$5328.45	+642.5%
Graham Number	$214.89	-70.1%
Reverse DCF	—	implied g: 15.2%
DDM	$32.96	-95.4%
EV/EBITDA	$731.97	+2.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $991.58M

Near-term growth (yrs 1–5)(%)Rev: 19.7% / EPS: 53.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.45%

Computed WACC: 10.45%

Cost of equity (Re)10.57%(Rf 4.30% + β 1.14 × ERP 5.50%)

Cost of debt (Rd)2.53%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.54%

Debt weight (D/V)1.46%

Results

Intrinsic Value / share$4075.96

Current Price$717.60

Upside / Downside+468.0%

Net Debt (used)-$637.41M

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

WACC \ Near-term	45.0%	49.0%	53.0%	57.0%	61.0%
7.0%	$6501.29	$7433.96	$8471.53	$9622.63	$10896.36
8.0%	$5072.08	$5796.71	$6602.68	$7496.68	$8485.75
9.0%	$4097.47	$4680.31	$5328.45	$6047.23	$6842.31
10.0%	$3394.55	$3875.19	$4409.57	$5002.07	$5657.35
11.0%	$2866.57	$3270.52	$3719.51	$4217.24	$4767.60

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $24.87

Book Value / share($)Yahoo: $82.52

Results

Graham Number$214.89

Current Price$717.60

Margin of Safety-70.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.45%

Terminal growth rate(%)

Computed WACC: 10.45%

Cost of equity (Re)10.57%(Rf 4.30% + β 1.14 × ERP 5.50%)

Cost of debt (Rd)2.53%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.54%

Debt weight (D/V)1.46%

Results

Current Price$717.60

Implied Near-term FCF Growth19.3%

Historical Revenue Growth19.7%

Historical Earnings Growth53.0%

Base FCF (TTM)$991.58M

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: $1.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$32.96

Current Price$717.60

Upside / Downside-95.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.77B

Target EV/EBITDA multipleCurrent: 18.2×

Net Debt($B)Default: -$637.41M

Results

Implied Equity Value / share$731.97

Current Price$717.60

Upside / Downside+2.0%

Implied EV$32.13B

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

Mult \ Net Debt	-$2.64B	-$1.64B	-$637.41M	$362.59M	$1.36B
14.2x	$618.91	$596.57	$574.23	$551.89	$529.56
16.2x	$697.78	$675.44	$653.10	$630.76	$608.42
18.2x	$776.64	$754.31	$731.97	$709.63	$687.29
20.2x	$855.51	$833.17	$810.83	$788.50	$766.16
22.2x	$934.38	$912.04	$889.70	$867.36	$845.02

← Overview Financial Statements ← Companies