GIS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($45.12)
DCF	$57.08	+26.5%
Graham Number	$42.74	-5.3%
Reverse DCF	—	implied g: 2.3%
DDM	$50.26	+11.4%
EV/EBITDA	$45.15	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.48B

Near-term growth (yrs 1–5)(%)Rev: -7.2% / EPS: -45.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 3.66%

Computed WACC: 3.66%

Cost of equity (Re)3.78%(Rf 4.30% + β -0.10 × ERP 5.50%)

Cost of debt (Rd)4.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)63.67%

Debt weight (D/V)36.33%

Results

Intrinsic Value / share$437.30

Current Price$45.12

Upside / Downside+869.2%

Net Debt (used)$13.05B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$57.78	$74.41	$93.76	$116.15	$141.95
8.0%	$43.15	$56.53	$72.08	$90.06	$110.73
9.0%	$33.01	$44.15	$57.08	$72.00	$89.15
10.0%	$25.56	$35.07	$46.08	$58.78	$73.35
11.0%	$19.86	$28.12	$37.68	$48.68	$61.29

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.65

Book Value / share($)Yahoo: $17.46

Results

Graham Number$42.74

Current Price$45.12

Margin of Safety-5.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 3.66%

Terminal growth rate(%)

Computed WACC: 3.66%

Cost of equity (Re)3.78%(Rf 4.30% + β -0.10 × ERP 5.50%)

Cost of debt (Rd)4.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)63.67%

Debt weight (D/V)36.33%

Results

Current Price$45.12

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth-7.2%

Historical Earnings Growth-45.8%

Base FCF (TTM)$2.48B

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: $2.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$50.26

Current Price$45.12

Upside / Downside+11.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.54B

Target EV/EBITDA multipleCurrent: 10.5×

Net Debt($B)Default: $13.05B

Results

Implied Equity Value / share$45.15

Current Price$45.12

Upside / Downside+0.1%

Implied EV$37.14B

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

Mult \ Net Debt	$7.05B	$10.05B	$13.05B	$16.05B	$19.05B
6.5x	$29.82	$24.20	$18.58	$12.96	$7.33
8.5x	$43.11	$37.48	$31.86	$26.24	$20.62
10.5x	$56.39	$50.77	$45.15	$39.52	$33.90
12.5x	$69.67	$64.05	$58.43	$52.81	$47.18
14.5x	$82.96	$77.33	$71.71	$66.09	$60.47

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