FHI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($56.97)
DCF	$441.04	+674.2%
Graham Number	$43.53	-23.6%
Reverse DCF	—	implied g: -3.2%
DDM	$28.02	-50.8%
EV/EBITDA	$53.23	-6.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $384.16M

Near-term growth (yrs 1–5)(%)Rev: 13.7% / EPS: 33.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.52%

Computed WACC: 7.52%

Cost of equity (Re)8.00%(Rf 4.30% + β 0.67 × ERP 5.50%)

Cost of debt (Rd)3.66%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.63%

Debt weight (D/V)9.37%

Results

Intrinsic Value / share$601.23

Current Price$56.97

Upside / Downside+955.4%

Net Debt (used)-$267.29M

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

WACC \ Near-term	25.6%	29.6%	33.6%	37.6%	41.6%
7.0%	$506.70	$589.68	$683.39	$788.86	$907.16
8.0%	$400.96	$466.05	$539.52	$622.17	$714.85
9.0%	$328.57	$381.41	$441.04	$508.09	$583.25
10.0%	$276.12	$320.10	$369.72	$425.48	$487.97
11.0%	$236.53	$273.84	$315.91	$363.17	$416.11

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.13

Book Value / share($)Yahoo: $16.42

Results

Graham Number$43.53

Current Price$56.97

Margin of Safety-23.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.52%

Terminal growth rate(%)

Computed WACC: 7.52%

Cost of equity (Re)8.00%(Rf 4.30% + β 0.67 × ERP 5.50%)

Cost of debt (Rd)3.66%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.63%

Debt weight (D/V)9.37%

Results

Current Price$56.97

Implied Near-term FCF Growth-7.0%

Historical Revenue Growth13.7%

Historical Earnings Growth33.6%

Base FCF (TTM)$384.16M

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: $1.36

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$28.02

Current Price$56.97

Upside / Downside-50.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $536.14M

Target EV/EBITDA multipleCurrent: 7.2×

Net Debt($B)Default: -$267.29M

Results

Implied Equity Value / share$53.23

Current Price$56.97

Upside / Downside-6.6%

Implied EV$3.86B

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

Mult \ Net Debt	-$2.27B	-$1.27B	-$267.29M	$732.71M	$1.73B
3.2x	$51.36	$38.46	$25.57	$12.67	$-0.23
5.2x	$65.19	$52.29	$39.40	$26.50	$13.60
7.2x	$79.02	$66.12	$53.23	$40.33	$27.43
9.2x	$92.85	$79.95	$67.05	$54.16	$41.26
11.2x	$106.68	$93.78	$80.88	$67.99	$55.09

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