ERII — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($10.26)
DCF	$8.05	-21.6%
Graham Number	$5.47	-46.7%
Reverse DCF	—	implied g: 25.1%
DDM	—	—
EV/EBITDA	$10.23	-0.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $8.59M

Near-term growth (yrs 1–5)(%)Rev: -0.3% / EPS: 20.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.94%

Computed WACC: 9.94%

Cost of equity (Re)10.11%(Rf 4.30% + β 1.06 × 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)98.30%

Debt weight (D/V)1.70%

Results

Intrinsic Value / share$7.07

Current Price$10.26

Upside / Downside-31.1%

Net Debt (used)-$65.82M

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

WACC \ Near-term	12.1%	16.1%	20.1%	24.1%	28.1%
7.0%	$8.67	$10.02	$11.56	$13.33	$15.33
8.0%	$7.19	$8.26	$9.49	$10.88	$12.46
9.0%	$6.18	$7.06	$8.06	$9.20	$10.49
10.0%	$5.44	$6.18	$7.02	$7.98	$9.06
11.0%	$4.88	$5.51	$6.23	$7.05	$7.97

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.34

Book Value / share($)Yahoo: $3.90

Results

Graham Number$5.47

Current Price$10.26

Margin of Safety-46.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.94%

Terminal growth rate(%)

Computed WACC: 9.94%

Cost of equity (Re)10.11%(Rf 4.30% + β 1.06 × 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)98.30%

Debt weight (D/V)1.70%

Results

Current Price$10.26

Implied Near-term FCF Growth28.1%

Historical Revenue Growth-0.3%

Historical Earnings Growth20.1%

Base FCF (TTM)$8.59M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$10.26

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $28.32M

Target EV/EBITDA multipleCurrent: 16.8×

Net Debt($B)Default: -$65.82M

Results

Implied Equity Value / share$10.23

Current Price$10.26

Upside / Downside-0.3%

Implied EV$476.20M

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

Mult \ Net Debt	-$2.07B	-$1.07B	-$65.82M	$934.18M	$1.93B
12.8x	$45.85	$26.97	$8.09	$-10.78	$-29.66
14.8x	$46.92	$28.04	$9.16	$-9.71	$-28.59
16.8x	$47.99	$29.11	$10.23	$-8.65	$-27.52
18.8x	$49.06	$30.18	$11.30	$-7.58	$-26.45
20.8x	$50.13	$31.25	$12.37	$-6.51	$-25.39

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