GOOG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($306.36)
DCF	$551.59	+80.0%
Graham Number	$91.41	-70.2%
Reverse DCF	—	implied g: 20.2%
DDM	$17.30	-94.4%
EV/EBITDA	$681.52	+122.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $38.09B

Near-term growth (yrs 1–5)(%)Rev: 18.0% / EPS: 31.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.09%

Computed WACC: 10.09%

Cost of equity (Re)10.27%(Rf 4.30% + β 1.09 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)98.22%

Debt weight (D/V)1.78%

Results

Intrinsic Value / share$458.47

Current Price$306.36

Upside / Downside+49.7%

Net Debt (used)-$59.85B

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

WACC \ Near-term	23.1%	27.1%	31.1%	35.1%	39.1%
7.0%	$628.19	$731.84	$849.16	$981.47	$1130.17
8.0%	$499.58	$581.00	$673.11	$776.95	$893.60
9.0%	$411.47	$477.68	$552.54	$636.90	$731.63
10.0%	$347.59	$402.78	$465.16	$535.42	$614.28
11.0%	$299.34	$346.22	$399.19	$458.81	$525.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.81

Book Value / share($)Yahoo: $34.35

Results

Graham Number$91.41

Current Price$306.36

Margin of Safety-70.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.09%

Terminal growth rate(%)

Computed WACC: 10.09%

Cost of equity (Re)10.27%(Rf 4.30% + β 1.09 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)98.22%

Debt weight (D/V)1.78%

Results

Current Price$306.36

Implied Near-term FCF Growth23.4%

Historical Revenue Growth18.0%

Historical Earnings Growth31.1%

Base FCF (TTM)$38.09B

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: $0.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$17.30

Current Price$306.36

Upside / Downside-94.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $150.18B

Target EV/EBITDA multipleCurrent: 24.3×

Net Debt($B)Default: -$59.85B

Results

Implied Equity Value / share$681.52

Current Price$306.36

Upside / Downside+122.5%

Implied EV$3.65T

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

Mult \ Net Debt	-$89.85B	-$74.85B	-$59.85B	-$44.85B	-$29.85B
20.3x	$576.57	$573.81	$571.05	$568.30	$565.54
22.3x	$631.80	$629.04	$626.29	$623.53	$620.77
24.3x	$687.03	$684.28	$681.52	$678.76	$676.00
26.3x	$742.27	$739.51	$736.75	$733.99	$731.23
28.3x	$797.50	$794.74	$791.98	$789.22	$786.46

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