G — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($40.21)
DCF	$78.75	+95.9%
Graham Number	$32.67	-18.7%
Reverse DCF	—	implied g: -5.2%
DDM	$15.45	-61.6%
EV/EBITDA	$40.10	-0.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $768.38M

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: 3.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.53%

Computed WACC: 7.53%

Cost of equity (Re)8.38%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)5.32%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)79.71%

Debt weight (D/V)20.29%

Results

Intrinsic Value / share$103.18

Current Price$40.21

Upside / Downside+156.6%

Net Debt (used)$558.38M

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

WACC \ Near-term	-2.4%	1.6%	5.6%	9.6%	13.6%
7.0%	$79.74	$96.46	$115.91	$138.39	$164.28
8.0%	$64.88	$78.33	$93.95	$111.98	$132.72
9.0%	$54.59	$65.78	$78.75	$93.72	$110.90
10.0%	$47.04	$56.58	$67.62	$80.34	$94.94
11.0%	$41.26	$49.54	$59.12	$70.13	$82.75

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.17

Book Value / share($)Yahoo: $14.97

Results

Graham Number$32.67

Current Price$40.21

Margin of Safety-18.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.53%

Terminal growth rate(%)

Computed WACC: 7.53%

Cost of equity (Re)8.38%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)5.32%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)79.71%

Debt weight (D/V)20.29%

Results

Current Price$40.21

Implied Near-term FCF Growth-8.8%

Historical Revenue Growth5.6%

Historical Earnings Growth3.8%

Base FCF (TTM)$768.38M

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: $0.75

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$15.45

Current Price$40.21

Upside / Downside-61.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $849.88M

Target EV/EBITDA multipleCurrent: 8.7×

Net Debt($B)Default: $558.38M

Results

Implied Equity Value / share$40.10

Current Price$40.21

Upside / Downside-0.3%

Implied EV$7.39B

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

Mult \ Net Debt	-$1.44B	-$441.62M	$558.38M	$1.56B	$2.56B
4.7x	$31.88	$26.01	$20.14	$14.27	$8.40
6.7x	$41.86	$35.99	$30.12	$24.25	$18.38
8.7x	$51.84	$45.97	$40.10	$34.23	$28.36
10.7x	$61.82	$55.95	$50.08	$44.21	$38.34
12.7x	$71.80	$65.93	$60.06	$54.19	$48.32

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