GL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($146.33)
DCF	$293.48	+100.6%
Graham Number	$155.24	+6.1%
Reverse DCF	—	implied g: -0.7%
DDM	$22.25	-84.8%
EV/EBITDA	$144.55	-1.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.14B

Near-term growth (yrs 1–5)(%)Rev: 3.6% / EPS: 9.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.43%

Computed WACC: 6.43%

Cost of equity (Re)6.85%(Rf 4.30% + β 0.46 × ERP 5.50%)

Cost of debt (Rd)6.08%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)79.47%

Debt weight (D/V)20.53%

Results

Intrinsic Value / share$521.20

Current Price$146.33

Upside / Downside+256.2%

Net Debt (used)$2.60B

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

WACC \ Near-term	1.5%	5.5%	9.5%	13.5%	17.5%
7.0%	$305.16	$371.49	$448.27	$536.68	$638.03
8.0%	$242.55	$295.65	$357.02	$427.61	$508.47
9.0%	$199.29	$243.26	$294.02	$352.36	$419.09
10.0%	$167.63	$204.95	$247.98	$297.37	$353.82
11.0%	$143.47	$175.73	$212.88	$255.48	$304.12

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $14.18

Book Value / share($)Yahoo: $75.54

Results

Graham Number$155.24

Current Price$146.33

Margin of Safety+6.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.43%

Terminal growth rate(%)

Computed WACC: 6.43%

Cost of equity (Re)6.85%(Rf 4.30% + β 0.46 × ERP 5.50%)

Cost of debt (Rd)6.08%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)79.47%

Debt weight (D/V)20.53%

Results

Current Price$146.33

Implied Near-term FCF Growth-8.1%

Historical Revenue Growth3.6%

Historical Earnings Growth9.5%

Base FCF (TTM)$1.14B

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: $1.08

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$22.25

Current Price$146.33

Upside / Downside-84.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.62B

Target EV/EBITDA multipleCurrent: 8.7×

Net Debt($B)Default: $2.60B

Results

Implied Equity Value / share$144.55

Current Price$146.33

Upside / Downside-1.2%

Implied EV$14.11B

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

Mult \ Net Debt	$603.03M	$1.60B	$2.60B	$3.60B	$4.60B
4.7x	$88.06	$75.49	$62.93	$50.37	$37.81
6.7x	$128.86	$116.30	$103.74	$91.18	$78.62
8.7x	$169.67	$157.11	$144.55	$131.99	$119.42
10.7x	$210.48	$197.92	$185.35	$172.79	$160.23
12.7x	$251.29	$238.72	$226.16	$213.60	$201.04

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