FOUR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($46.94)
DCF	$578.61	+1132.7%
Graham Number	$18.67	-60.2%
Reverse DCF	—	implied g: 1.5%
DDM	—	—
EV/EBITDA	$78.46	+67.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $476.25M

Near-term growth (yrs 1–5)(%)Rev: 33.9% / EPS: -72.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.49%

Computed WACC: 6.49%

Cost of equity (Re)13.34%(Rf 4.30% + β 1.64 × ERP 5.50%)

Cost of debt (Rd)0.41%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)47.40%

Debt weight (D/V)52.60%

Results

Intrinsic Value / share$1079.16

Current Price$46.94

Upside / Downside+2199.0%

Net Debt (used)$3.65B

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

WACC \ Near-term	25.9%	29.9%	33.9%	37.9%	41.9%
7.0%	$675.68	$795.75	$931.31	$1083.84	$1254.88
8.0%	$522.17	$616.32	$722.58	$842.09	$976.06
9.0%	$417.08	$493.51	$579.72	$676.65	$785.27
10.0%	$340.95	$404.56	$476.28	$556.88	$647.16
11.0%	$283.50	$337.44	$398.24	$466.53	$543.01

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.14

Book Value / share($)Yahoo: $7.24

Results

Graham Number$18.67

Current Price$46.94

Margin of Safety-60.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.49%

Terminal growth rate(%)

Computed WACC: 6.49%

Cost of equity (Re)13.34%(Rf 4.30% + β 1.64 × ERP 5.50%)

Cost of debt (Rd)0.41%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)47.40%

Debt weight (D/V)52.60%

Results

Current Price$46.94

Implied Near-term FCF Growth-5.8%

Historical Revenue Growth33.9%

Historical Earnings Growth-72.2%

Base FCF (TTM)$476.25M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$46.94

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $784.00M

Target EV/EBITDA multipleCurrent: 11.4×

Net Debt($B)Default: $3.65B

Results

Implied Equity Value / share$78.46

Current Price$46.94

Upside / Downside+67.2%

Implied EV$8.95B

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

Mult \ Net Debt	$1.65B	$2.65B	$3.65B	$4.65B	$5.65B
7.4x	$61.65	$46.85	$32.05	$17.25	$2.45
9.4x	$84.86	$70.06	$55.25	$40.45	$25.65
11.4x	$108.06	$93.26	$78.46	$63.66	$48.86
13.4x	$131.27	$116.47	$101.67	$86.87	$72.07
15.4x	$154.48	$139.68	$124.88	$110.08	$95.28

← Overview Financial Statements ← Companies