EQR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($62.41)
DCF	$43.55	-30.2%
Graham Number	$43.93	-29.6%
Reverse DCF	—	implied g: 9.3%
DDM	$57.06	-8.6%
EV/EBITDA	$64.15	+2.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.42B

Near-term growth (yrs 1–5)(%)Rev: 2.0% / EPS: -8.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.95%

Computed WACC: 6.95%

Cost of equity (Re)8.34%(Rf 4.30% + β 0.73 × ERP 5.50%)

Cost of debt (Rd)3.73%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)74.27%

Debt weight (D/V)25.73%

Results

Intrinsic Value / share$74.26

Current Price$62.41

Upside / Downside+19.0%

Net Debt (used)$8.42B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$44.12	$57.55	$73.18	$91.27	$112.10
8.0%	$32.30	$43.11	$55.67	$70.19	$86.89
9.0%	$24.11	$33.11	$43.55	$55.61	$69.46
10.0%	$18.09	$25.78	$34.67	$44.93	$56.69
11.0%	$13.49	$20.16	$27.88	$36.77	$46.95

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.94

Book Value / share($)Yahoo: $29.18

Results

Graham Number$43.93

Current Price$62.41

Margin of Safety-29.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.95%

Terminal growth rate(%)

Computed WACC: 6.95%

Cost of equity (Re)8.34%(Rf 4.30% + β 0.73 × ERP 5.50%)

Cost of debt (Rd)3.73%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)74.27%

Debt weight (D/V)25.73%

Results

Current Price$62.41

Implied Near-term FCF Growth2.9%

Historical Revenue Growth2.0%

Historical Earnings Growth-8.8%

Base FCF (TTM)$1.42B

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: $2.77

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$57.06

Current Price$62.41

Upside / Downside-8.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.88B

Target EV/EBITDA multipleCurrent: 17.3×

Net Debt($B)Default: $8.42B

Results

Implied Equity Value / share$64.15

Current Price$62.41

Upside / Downside+2.8%

Implied EV$32.64B

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

Mult \ Net Debt	$4.42B	$6.42B	$8.42B	$10.42B	$12.42B
13.3x	$54.80	$49.50	$44.21	$38.91	$33.61
15.3x	$64.77	$59.47	$54.18	$48.88	$43.58
17.3x	$74.74	$69.44	$64.15	$58.85	$53.55
19.3x	$84.71	$79.42	$74.12	$68.82	$63.52
21.3x	$94.68	$89.39	$84.09	$78.79	$73.49

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