ESS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($256.03)
DCF	$162.90	-36.4%
Graham Number	$141.92	-44.6%
Reverse DCF	—	implied g: 10.1%
DDM	$212.18	-17.1%
EV/EBITDA	$258.15	+0.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $984.06M

Near-term growth (yrs 1–5)(%)Rev: 3.2% / EPS: -68.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.03%

Computed WACC: 6.03%

Cost of equity (Re)8.36%(Rf 4.30% + β 0.74 × 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)72.09%

Debt weight (D/V)27.91%

Results

Intrinsic Value / share$391.13

Current Price$256.03

Upside / Downside+52.8%

Net Debt (used)$6.77B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$165.20	$219.85	$283.43	$357.02	$441.77
8.0%	$117.11	$161.10	$212.20	$271.26	$339.20
9.0%	$83.79	$120.41	$162.90	$211.94	$268.28
10.0%	$59.32	$90.57	$126.76	$168.48	$216.36
11.0%	$40.60	$67.74	$99.14	$135.28	$176.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.41

Book Value / share($)Yahoo: $85.99

Results

Graham Number$141.92

Current Price$256.03

Margin of Safety-44.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.03%

Terminal growth rate(%)

Computed WACC: 6.03%

Cost of equity (Re)8.36%(Rf 4.30% + β 0.74 × 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)72.09%

Debt weight (D/V)27.91%

Results

Current Price$256.03

Implied Near-term FCF Growth0.1%

Historical Revenue Growth3.2%

Historical Earnings Growth-68.7%

Base FCF (TTM)$984.06M

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: $10.30

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$212.18

Current Price$256.03

Upside / Downside-17.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.26B

Target EV/EBITDA multipleCurrent: 18.7×

Net Debt($B)Default: $6.77B

Results

Implied Equity Value / share$258.15

Current Price$256.03

Upside / Downside+0.8%

Implied EV$23.42B

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

Mult \ Net Debt	$2.77B	$4.77B	$6.77B	$8.77B	$10.77B
14.7x	$242.30	$211.28	$180.26	$149.24	$118.22
16.7x	$281.24	$250.22	$219.20	$188.18	$157.16
18.7x	$320.18	$289.16	$258.15	$227.13	$196.11
20.7x	$359.13	$328.11	$297.09	$266.07	$235.05
22.7x	$398.07	$367.05	$336.03	$305.01	$273.99

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