ET — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($19.10)
DCF	$25.67	+34.4%
Graham Number	$15.67	-18.0%
Reverse DCF	—	implied g: 26.8%
DDM	$27.40	+43.4%
EV/EBITDA	$24.40	+27.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.21B

Near-term growth (yrs 1–5)(%)Rev: 29.6% / EPS: -15.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.00%

Computed WACC: 6.00%

Cost of equity (Re)7.83%(Rf 4.30% + β 0.64 × ERP 5.50%)

Cost of debt (Rd)5.42%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)48.39%

Debt weight (D/V)51.61%

Results

Intrinsic Value / share$73.85

Current Price$19.10

Upside / Downside+286.7%

Net Debt (used)$68.82B

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

WACC \ Near-term	21.6%	25.6%	29.6%	33.6%	37.6%
7.0%	$31.75	$40.53	$50.49	$61.74	$74.39
8.0%	$21.02	$27.93	$35.76	$44.59	$54.53
9.0%	$13.67	$19.30	$25.67	$32.85	$40.93
10.0%	$8.34	$13.04	$18.35	$24.34	$31.07
11.0%	$4.31	$8.31	$12.82	$17.91	$23.62

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.21

Book Value / share($)Yahoo: $9.02

Results

Graham Number$15.67

Current Price$19.10

Margin of Safety-18.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.00%

Terminal growth rate(%)

Computed WACC: 6.00%

Cost of equity (Re)7.83%(Rf 4.30% + β 0.64 × ERP 5.50%)

Cost of debt (Rd)5.42%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)48.39%

Debt weight (D/V)51.61%

Results

Current Price$19.10

Implied Near-term FCF Growth14.8%

Historical Revenue Growth29.6%

Historical Earnings Growth-15.2%

Base FCF (TTM)$2.21B

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: $1.33

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$27.40

Current Price$19.10

Upside / Downside+43.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $14.99B

Target EV/EBITDA multipleCurrent: 10.2×

Net Debt($B)Default: $68.82B

Results

Implied Equity Value / share$24.40

Current Price$19.10

Upside / Downside+27.8%

Implied EV$152.77B

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

Mult \ Net Debt	$34.82B	$51.82B	$68.82B	$85.82B	$102.82B
6.2x	$16.85	$11.91	$6.97	$2.03	$-2.91
8.2x	$25.57	$20.63	$15.69	$10.74	$5.80
10.2x	$34.29	$29.34	$24.40	$19.46	$14.52
12.2x	$43.00	$38.06	$33.12	$28.18	$23.24
14.2x	$51.72	$46.78	$41.84	$36.89	$31.95

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