FANG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($176.12)
DCF	$-13.47	-107.6%
Graham Number	$129.42	-26.5%
Reverse DCF	—	implied g: 37.2%
DDM	$86.52	-50.9%
EV/EBITDA	$198.43	+12.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $602.63M

Near-term growth (yrs 1–5)(%)Rev: -9.4% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.10%

Computed WACC: 6.10%

Cost of equity (Re)7.43%(Rf 4.30% + β 0.57 × ERP 5.50%)

Cost of debt (Rd)1.89%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.66%

Debt weight (D/V)22.34%

Results

Intrinsic Value / share$16.85

Current Price$176.12

Upside / Downside-90.4%

Net Debt (used)$14.41B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-13.15	$-5.56	$3.26	$13.47	$25.23
8.0%	$-19.82	$-13.71	$-6.63	$1.57	$10.99
9.0%	$-24.44	$-19.36	$-13.47	$-6.66	$1.16
10.0%	$-27.83	$-23.50	$-18.48	$-12.69	$-6.05
11.0%	$-30.43	$-26.67	$-22.31	$-17.30	$-11.55

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.73

Book Value / share($)Yahoo: $129.91

Results

Graham Number$129.42

Current Price$176.12

Margin of Safety-26.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.10%

Terminal growth rate(%)

Computed WACC: 6.10%

Cost of equity (Re)7.43%(Rf 4.30% + β 0.57 × ERP 5.50%)

Cost of debt (Rd)1.89%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.66%

Debt weight (D/V)22.34%

Results

Current Price$176.12

Implied Near-term FCF Growth24.8%

Historical Revenue Growth-9.4%

Historical Earnings Growth—

Base FCF (TTM)$602.63M

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: $4.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$86.52

Current Price$176.12

Upside / Downside-50.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $10.37B

Target EV/EBITDA multipleCurrent: 6.8×

Net Debt($B)Default: $14.41B

Results

Implied Equity Value / share$198.43

Current Price$176.12

Upside / Downside+12.7%

Implied EV$70.89B

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

Mult \ Net Debt	$6.41B	$10.41B	$14.41B	$18.41B	$22.41B
2.8x	$80.74	$66.68	$52.63	$38.57	$24.52
4.8x	$153.64	$139.59	$125.53	$111.48	$97.42
6.8x	$226.54	$212.49	$198.43	$184.38	$170.32
8.8x	$299.45	$285.39	$271.34	$257.28	$243.23
10.8x	$372.35	$358.30	$344.24	$330.19	$316.13

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