GATX — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($185.47)
DCF	$-8447.66	-4654.7%
Graham Number	$126.34	-31.9%
Reverse DCF	—	—
DDM	$54.38	-70.7%
EV/EBITDA	$210.39	+13.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$4.99B

Near-term growth (yrs 1–5)(%)Rev: 8.6% / EPS: 25.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.68%

Computed WACC: 5.68%

Cost of equity (Re)10.91%(Rf 4.30% + β 1.20 × ERP 5.50%)

Cost of debt (Rd)3.77%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)34.11%

Debt weight (D/V)65.89%

Results

Intrinsic Value / share$-18675.50

Current Price$185.47

Upside / Downside-10169.3%

Net Debt (used)$11.97B

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

WACC \ Near-term	17.8%	21.8%	25.8%	29.8%	33.8%
7.0%	$-9390.01	$-10970.60	$-12768.53	$-14805.67	$-17105.31
8.0%	$-7542.77	$-8788.96	$-10205.66	$-11809.98	$-13620.15
9.0%	$-6275.10	$-7292.15	$-8447.66	$-9755.48	$-11230.37
10.0%	$-5354.38	$-6205.31	$-7171.47	$-8264.37	$-9496.27
11.0%	$-4657.56	$-5383.00	$-6206.16	$-7136.78	$-8185.20

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $9.13

Book Value / share($)Yahoo: $77.70

Results

Graham Number$126.34

Current Price$185.47

Margin of Safety-31.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.68%

Terminal growth rate(%)

Computed WACC: 5.68%

Cost of equity (Re)10.91%(Rf 4.30% + β 1.20 × ERP 5.50%)

Cost of debt (Rd)3.77%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)34.11%

Debt weight (D/V)65.89%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$185.47

Implied Near-term FCF Growth—

Historical Revenue Growth8.6%

Historical Earnings Growth25.8%

Base FCF (TTM)-$4.99B

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: $2.64

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$54.38

Current Price$185.47

Upside / Downside-70.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $996.80M

Target EV/EBITDA multipleCurrent: 19.5×

Net Debt($B)Default: $11.97B

Results

Implied Equity Value / share$210.39

Current Price$185.47

Upside / Downside+13.4%

Implied EV$19.44B

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

Mult \ Net Debt	$5.97B	$8.97B	$11.97B	$14.97B	$17.97B
15.5x	$267.09	$182.58	$98.08	$13.57	$-70.94
17.5x	$323.25	$238.74	$154.23	$69.73	$-14.78
19.5x	$379.41	$294.90	$210.39	$125.88	$41.38
21.5x	$435.56	$351.06	$266.55	$182.04	$97.53
23.5x	$491.72	$407.21	$322.71	$238.20	$153.69

← Overview Financial Statements ← Companies