GAP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($28.15)
DCF	$20.98	-25.5%
Graham Number	$22.13	-21.4%
Reverse DCF	—	implied g: 8.8%
DDM	$14.42	-48.8%
EV/EBITDA	$28.15	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $615.37M

Near-term growth (yrs 1–5)(%)Rev: 3.0% / EPS: -13.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.47%

Computed WACC: 12.47%

Cost of equity (Re)16.61%(Rf 4.30% + β 2.24 × ERP 5.50%)

Cost of debt (Rd)5.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)65.49%

Debt weight (D/V)34.51%

Results

Intrinsic Value / share$10.76

Current Price$28.15

Upside / Downside-61.8%

Net Debt (used)$3.00B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$21.23	$27.16	$34.05	$42.03	$51.22
8.0%	$16.02	$20.79	$26.33	$32.73	$40.10
9.0%	$12.41	$16.38	$20.98	$26.30	$32.41
10.0%	$9.76	$13.14	$17.07	$21.59	$26.78
11.0%	$7.73	$10.67	$14.07	$17.99	$22.48

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.22

Book Value / share($)Yahoo: $9.80

Results

Graham Number$22.13

Current Price$28.15

Margin of Safety-21.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.47%

Terminal growth rate(%)

Computed WACC: 12.47%

Cost of equity (Re)16.61%(Rf 4.30% + β 2.24 × ERP 5.50%)

Cost of debt (Rd)5.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)65.49%

Debt weight (D/V)34.51%

Results

Current Price$28.15

Implied Near-term FCF Growth17.3%

Historical Revenue Growth3.0%

Historical Earnings Growth-13.9%

Base FCF (TTM)$615.37M

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: $0.70

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$14.42

Current Price$28.15

Upside / Downside-48.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.67B

Target EV/EBITDA multipleCurrent: 8.1×

Net Debt($B)Default: $3.00B

Results

Implied Equity Value / share$28.15

Current Price$28.15

Upside / Downside-0.0%

Implied EV$13.47B

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

Mult \ Net Debt	$999.00M	$2.00B	$3.00B	$4.00B	$5.00B
4.1x	$15.54	$12.85	$10.17	$7.48	$4.79
6.1x	$24.53	$21.85	$19.16	$16.47	$13.78
8.1x	$33.53	$30.84	$28.15	$25.46	$22.77
10.1x	$42.52	$39.83	$37.14	$34.45	$31.76
12.1x	$51.51	$48.82	$46.13	$43.44	$40.75

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