ESI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($34.68)
DCF	$24.84	-28.4%
Graham Number	$13.99	-59.6%
Reverse DCF	—	implied g: 13.3%
DDM	$6.59	-81.0%
EV/EBITDA	$34.74	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $335.60M

Near-term growth (yrs 1–5)(%)Rev: 8.3% / EPS: -88.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.28%

Computed WACC: 9.28%

Cost of equity (Re)11.18%(Rf 4.30% + β 1.25 × 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)83.06%

Debt weight (D/V)16.94%

Results

Intrinsic Value / share$23.62

Current Price$34.68

Upside / Downside-31.9%

Net Debt (used)$1.10B

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

WACC \ Near-term	0.3%	4.3%	8.3%	12.3%	16.3%
7.0%	$25.70	$31.68	$38.60	$46.59	$55.76
8.0%	$20.16	$24.95	$30.49	$36.88	$44.20
9.0%	$16.33	$20.30	$24.89	$30.18	$36.23
10.0%	$13.52	$16.90	$20.79	$25.27	$30.40
11.0%	$11.38	$14.30	$17.67	$21.54	$25.96

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.79

Book Value / share($)Yahoo: $11.02

Results

Graham Number$13.99

Current Price$34.68

Margin of Safety-59.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.28%

Terminal growth rate(%)

Computed WACC: 9.28%

Cost of equity (Re)11.18%(Rf 4.30% + β 1.25 × 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)83.06%

Debt weight (D/V)16.94%

Results

Current Price$34.68

Implied Near-term FCF Growth14.1%

Historical Revenue Growth8.3%

Historical Earnings Growth-88.8%

Base FCF (TTM)$335.60M

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$34.68

Upside / Downside-81.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $493.40M

Target EV/EBITDA multipleCurrent: 19.4×

Net Debt($B)Default: $1.10B

Results

Implied Equity Value / share$34.74

Current Price$34.68

Upside / Downside+0.2%

Implied EV$9.56B

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

Mult \ Net Debt	$1.10B	$1.10B	$1.10B	$1.10B	$1.10B
15.4x	$26.64	$26.64	$26.64	$26.64	$26.64
17.4x	$30.69	$30.69	$30.69	$30.69	$30.69
19.4x	$34.74	$34.74	$34.74	$34.74	$34.74
21.4x	$38.79	$38.79	$38.79	$38.79	$38.79
23.4x	$42.84	$42.84	$42.84	$42.84	$42.84

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