GEHC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($84.27)
DCF	$60.40	-28.3%
Graham Number	$48.29	-42.7%
Reverse DCF	—	implied g: 11.9%
DDM	$2.88	-96.6%
EV/EBITDA	$84.75	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.69B

Near-term growth (yrs 1–5)(%)Rev: 7.1% / EPS: -17.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.49%

Computed WACC: 9.49%

Cost of equity (Re)11.07%(Rf 4.30% + β 1.23 × ERP 5.50%)

Cost of debt (Rd)4.64%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)78.59%

Debt weight (D/V)21.41%

Results

Intrinsic Value / share$54.96

Current Price$84.27

Upside / Downside-34.8%

Net Debt (used)$5.97B

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

WACC \ Near-term	-0.9%	3.1%	7.1%	11.1%	15.1%
7.0%	$61.77	$76.71	$94.04	$114.05	$137.05
8.0%	$48.19	$60.18	$74.08	$90.10	$108.49
9.0%	$38.79	$48.75	$60.28	$73.55	$88.77
10.0%	$31.90	$40.38	$50.17	$61.44	$74.35
11.0%	$26.64	$33.98	$42.46	$52.21	$63.35

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.55

Book Value / share($)Yahoo: $22.77

Results

Graham Number$48.29

Current Price$84.27

Margin of Safety-42.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.49%

Terminal growth rate(%)

Computed WACC: 9.49%

Cost of equity (Re)11.07%(Rf 4.30% + β 1.23 × ERP 5.50%)

Cost of debt (Rd)4.64%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)78.59%

Debt weight (D/V)21.41%

Results

Current Price$84.27

Implied Near-term FCF Growth13.3%

Historical Revenue Growth7.1%

Historical Earnings Growth-17.7%

Base FCF (TTM)$1.69B

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: $0.14

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$2.88

Current Price$84.27

Upside / Downside-96.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.64B

Target EV/EBITDA multipleCurrent: 12.2×

Net Debt($B)Default: $5.97B

Results

Implied Equity Value / share$84.75

Current Price$84.27

Upside / Downside+0.6%

Implied EV$44.60B

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

Mult \ Net Debt	$3.97B	$4.97B	$5.97B	$6.97B	$7.97B
8.2x	$57.17	$54.98	$52.79	$50.59	$48.40
10.2x	$73.16	$70.96	$68.77	$66.57	$64.38
12.2x	$89.14	$86.95	$84.75	$82.56	$80.36
14.2x	$105.12	$102.93	$100.73	$98.54	$96.35
16.2x	$121.10	$118.91	$116.72	$114.52	$112.33

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