ESE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($285.79)
DCF	$281.12	-1.6%
Graham Number	$80.68	-71.8%
Reverse DCF	—	implied g: 9.1%
DDM	$6.59	-97.7%
EV/EBITDA	$285.79	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $339.68M

Near-term growth (yrs 1–5)(%)Rev: 8.8% / EPS: -10.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.88%

Computed WACC: 10.88%

Cost of equity (Re)10.93%(Rf 4.30% + β 1.21 × ERP 5.50%)

Cost of debt (Rd)11.36%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)97.05%

Debt weight (D/V)2.95%

Results

Intrinsic Value / share$213.44

Current Price$285.79

Upside / Downside-25.3%

Net Debt (used)$168.99M

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

WACC \ Near-term	0.8%	4.8%	8.8%	12.8%	16.8%
7.0%	$289.76	$348.20	$415.89	$493.90	$583.39
8.0%	$235.20	$282.02	$336.17	$398.51	$469.96
9.0%	$197.48	$236.29	$281.12	$332.67	$391.69
10.0%	$169.86	$202.82	$240.85	$284.54	$334.50
11.0%	$148.77	$177.29	$210.15	$247.86	$290.93

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.80

Book Value / share($)Yahoo: $60.27

Results

Graham Number$80.68

Current Price$285.79

Margin of Safety-71.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.88%

Terminal growth rate(%)

Computed WACC: 10.88%

Cost of equity (Re)10.93%(Rf 4.30% + β 1.21 × ERP 5.50%)

Cost of debt (Rd)11.36%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)97.05%

Debt weight (D/V)2.95%

Results

Current Price$285.79

Implied Near-term FCF Growth13.9%

Historical Revenue Growth8.8%

Historical Earnings Growth-10.0%

Base FCF (TTM)$339.68M

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: $0.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$6.59

Current Price$285.79

Upside / Downside-97.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $272.64M

Target EV/EBITDA multipleCurrent: 27.8×

Net Debt($B)Default: $168.99M

Results

Implied Equity Value / share$285.79

Current Price$285.79

Upside / Downside-0.0%

Implied EV$7.57B

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

Mult \ Net Debt	-$1.83B	-$831.01M	$168.99M	$1.17B	$2.17B
23.8x	$320.91	$282.29	$243.67	$205.06	$166.44
25.8x	$341.96	$303.35	$264.73	$226.11	$187.50
27.8x	$363.02	$324.40	$285.79	$247.17	$208.56
29.8x	$384.08	$345.46	$306.84	$268.23	$229.61
31.8x	$405.13	$366.52	$327.90	$289.29	$250.67

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