ESNT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($61.33)
DCF	$67.77	+10.5%
Graham Number	$96.76	+57.8%
Reverse DCF	—	implied g: 3.2%
DDM	$28.84	-53.0%
EV/EBITDA	$61.33	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $351.27M

Near-term growth (yrs 1–5)(%)Rev: -0.8% / EPS: 0.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.36%

Computed WACC: 8.36%

Cost of equity (Re)9.11%(Rf 4.30% + β 0.87 × 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)91.77%

Debt weight (D/V)8.23%

Results

Intrinsic Value / share$74.97

Current Price$61.33

Upside / Downside+22.2%

Net Debt (used)-$239.64M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$68.33	$81.63	$97.11	$115.02	$135.66
8.0%	$56.62	$67.33	$79.77	$94.14	$110.68
9.0%	$48.51	$57.42	$67.77	$79.70	$93.42
10.0%	$42.55	$50.16	$58.97	$69.12	$80.78
11.0%	$37.99	$44.60	$52.24	$61.04	$71.13

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.90

Book Value / share($)Yahoo: $60.31

Results

Graham Number$96.76

Current Price$61.33

Margin of Safety+57.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.36%

Terminal growth rate(%)

Computed WACC: 8.36%

Cost of equity (Re)9.11%(Rf 4.30% + β 0.87 × 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)91.77%

Debt weight (D/V)8.23%

Results

Current Price$61.33

Implied Near-term FCF Growth1.5%

Historical Revenue Growth-0.8%

Historical Earnings Growth0.9%

Base FCF (TTM)$351.27M

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: $1.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$28.84

Current Price$61.33

Upside / Downside-53.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $859.79M

Target EV/EBITDA multipleCurrent: 6.5×

Net Debt($B)Default: -$239.64M

Results

Implied Equity Value / share$61.33

Current Price$61.33

Upside / Downside-0.0%

Implied EV$5.56B

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

Mult \ Net Debt	-$2.24B	-$1.24B	-$239.64M	$760.36M	$1.76B
2.5x	$46.11	$35.53	$24.95	$14.37	$3.80
4.5x	$64.29	$53.72	$43.14	$32.56	$21.99
6.5x	$82.48	$71.91	$61.33	$50.75	$40.17
8.5x	$100.67	$90.09	$79.52	$68.94	$58.36
10.5x	$118.86	$108.28	$97.71	$87.13	$76.55

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