FR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($63.50)
DCF	$82.21	+29.5%
Graham Number	$29.13	-54.1%
Reverse DCF	—	implied g: 11.6%
DDM	$41.20	-35.1%
EV/EBITDA	$64.16	+1.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $421.64M

Near-term growth (yrs 1–5)(%)Rev: 7.7% / EPS: 15.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.16%

Computed WACC: 8.16%

Cost of equity (Re)10.58%(Rf 4.30% + β 1.14 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)77.12%

Debt weight (D/V)22.88%

Results

Intrinsic Value / share$98.88

Current Price$63.50

Upside / Downside+55.7%

Net Debt (used)$2.50B

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

WACC \ Near-term	7.2%	11.2%	15.2%	19.2%	23.2%
7.0%	$88.72	$109.01	$132.34	$159.04	$189.49
8.0%	$67.96	$84.10	$102.65	$123.86	$148.01
9.0%	$53.66	$66.95	$82.21	$99.64	$119.48
10.0%	$43.23	$54.44	$67.30	$81.99	$98.69
11.0%	$35.29	$44.93	$55.98	$68.58	$82.90

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.87

Book Value / share($)Yahoo: $20.17

Results

Graham Number$29.13

Current Price$63.50

Margin of Safety-54.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.16%

Terminal growth rate(%)

Computed WACC: 8.16%

Cost of equity (Re)10.58%(Rf 4.30% + β 1.14 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)77.12%

Debt weight (D/V)22.88%

Results

Current Price$63.50

Implied Near-term FCF Growth9.1%

Historical Revenue Growth7.7%

Historical Earnings Growth15.2%

Base FCF (TTM)$421.64M

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: $2.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$41.20

Current Price$63.50

Upside / Downside-35.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $503.28M

Target EV/EBITDA multipleCurrent: 21.9×

Net Debt($B)Default: $2.50B

Results

Implied Equity Value / share$64.16

Current Price$63.50

Upside / Downside+1.0%

Implied EV$11.00B

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

Mult \ Net Debt	$495.91M	$1.50B	$2.50B	$3.50B	$4.50B
17.9x	$64.06	$56.51	$48.97	$41.42	$33.88
19.9x	$71.66	$64.11	$56.56	$49.02	$41.47
21.9x	$79.25	$71.71	$64.16	$56.61	$49.07
23.9x	$86.85	$79.30	$71.75	$64.21	$56.66
25.9x	$94.44	$86.90	$79.35	$71.80	$64.26

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