FAF — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($70.11)
DCF	$274883.68	+391974.8%
Graham Number	$85.32	+21.7%
Reverse DCF	—	implied g: 2.3%
DDM	$45.11	-35.7%
EV/EBITDA	$70.35	+0.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $557.88M

Near-term growth (yrs 1–5)(%)Rev: 21.6% / EPS: 194.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.56%

Computed WACC: 9.56%

Cost of equity (Re)11.40%(Rf 4.30% + β 1.29 × ERP 5.50%)

Cost of debt (Rd)5.88%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)72.79%

Debt weight (D/V)27.21%

Results

Intrinsic Value / share$243459.86

Current Price$70.11

Upside / Downside+347154.1%

Net Debt (used)$1.20B

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

WACC \ Near-term	186.5%	190.5%	194.5%	198.5%	202.5%
7.0%	$400472.05	$429210.87	$459576.47	$491636.99	$525462.38
8.0%	$304616.24	$326474.35	$349569.68	$373954.02	$399680.60
9.0%	$239832.97	$257040.90	$275222.76	$294419.32	$314672.49
10.0%	$193569.58	$207456.76	$222129.86	$237621.79	$253966.33
11.0%	$159191.38	$170610.98	$182676.79	$195415.87	$208856.01

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.00

Book Value / share($)Yahoo: $53.92

Results

Graham Number$85.32

Current Price$70.11

Margin of Safety+21.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.56%

Terminal growth rate(%)

Computed WACC: 9.56%

Cost of equity (Re)11.40%(Rf 4.30% + β 1.29 × ERP 5.50%)

Cost of debt (Rd)5.88%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)72.79%

Debt weight (D/V)27.21%

Results

Current Price$70.11

Implied Near-term FCF Growth3.7%

Historical Revenue Growth21.6%

Historical Earnings Growth194.5%

Base FCF (TTM)$557.88M

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: $2.19

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$45.11

Current Price$70.11

Upside / Downside-35.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.20B

Target EV/EBITDA multipleCurrent: 7.0×

Net Debt($B)Default: $1.20B

Results

Implied Equity Value / share$70.35

Current Price$70.11

Upside / Downside+0.3%

Implied EV$8.37B

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

Mult \ Net Debt	$1.20B	$1.20B	$1.20B	$1.20B	$1.20B
3.0x	$23.27	$23.27	$23.27	$23.27	$23.27
5.0x	$46.81	$46.81	$46.81	$46.81	$46.81
7.0x	$70.35	$70.35	$70.35	$70.35	$70.35
9.0x	$93.89	$93.89	$93.89	$93.89	$93.89
11.0x	$117.43	$117.43	$117.43	$117.43	$117.43

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