FLS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($87.51)
DCF	$45.13	-48.4%
Graham Number	$31.83	-63.6%
Reverse DCF	—	implied g: 15.1%
DDM	$18.13	-79.3%
EV/EBITDA	$88.00	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $384.12M

Near-term growth (yrs 1–5)(%)Rev: 3.5% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.46%

Computed WACC: 10.46%

Cost of equity (Re)11.48%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)5.05%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.35%

Debt weight (D/V)13.65%

Results

Intrinsic Value / share$35.30

Current Price$87.51

Upside / Downside-59.7%

Net Debt (used)$1.00B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$45.59	$56.40	$68.97	$83.52	$100.28
8.0%	$36.08	$44.78	$54.88	$66.56	$80.00
9.0%	$29.49	$36.73	$45.13	$54.83	$65.97
10.0%	$24.65	$30.83	$37.99	$46.24	$55.71
11.0%	$20.95	$26.31	$32.52	$39.67	$47.87

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.61

Book Value / share($)Yahoo: $17.25

Results

Graham Number$31.83

Current Price$87.51

Margin of Safety-63.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.46%

Terminal growth rate(%)

Computed WACC: 10.46%

Cost of equity (Re)11.48%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)5.05%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.35%

Debt weight (D/V)13.65%

Results

Current Price$87.51

Implied Near-term FCF Growth19.2%

Historical Revenue Growth3.5%

Historical Earnings Growth—

Base FCF (TTM)$384.12M

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: $0.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$18.13

Current Price$87.51

Upside / Downside-79.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $731.68M

Target EV/EBITDA multipleCurrent: 16.7×

Net Debt($B)Default: $1.00B

Results

Implied Equity Value / share$88.00

Current Price$87.51

Upside / Downside+0.6%

Implied EV$12.20B

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

Mult \ Net Debt	$1.00B	$1.00B	$1.00B	$1.00B	$1.00B
12.7x	$65.00	$65.00	$65.00	$65.00	$65.00
14.7x	$76.50	$76.50	$76.50	$76.50	$76.50
16.7x	$88.00	$88.00	$88.00	$88.00	$88.00
18.7x	$99.50	$99.50	$99.50	$99.50	$99.50
20.7x	$111.00	$111.00	$111.00	$111.00	$111.00

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