HD — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($380.72)
DCF	$87.78	-76.9%
Graham Number	$64.30	-83.1%
Reverse DCF	—	implied g: 23.7%
DDM	$191.99	-49.6%
EV/EBITDA	$379.76	-0.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $8.62B

Near-term growth (yrs 1–5)(%)Rev: -3.8% / EPS: -14.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.78%

Computed WACC: 8.78%

Cost of equity (Re)10.29%(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)85.29%

Debt weight (D/V)14.71%

Results

Intrinsic Value / share$93.17

Current Price$380.72

Upside / Downside-75.5%

Net Debt (used)$63.96B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$89.09	$120.10	$156.17	$197.92	$246.01
8.0%	$61.80	$86.76	$115.75	$149.26	$187.81
9.0%	$42.90	$63.68	$87.78	$115.60	$147.57
10.0%	$29.02	$46.74	$67.28	$90.95	$118.11
11.0%	$18.39	$33.79	$51.61	$72.11	$95.62

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $14.24

Book Value / share($)Yahoo: $12.90

Results

Graham Number$64.30

Current Price$380.72

Margin of Safety-83.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.78%

Terminal growth rate(%)

Computed WACC: 8.78%

Cost of equity (Re)10.29%(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)85.29%

Debt weight (D/V)14.71%

Results

Current Price$380.72

Implied Near-term FCF Growth23.0%

Historical Revenue Growth-3.8%

Historical Earnings Growth-14.5%

Base FCF (TTM)$8.62B

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: $9.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$191.99

Current Price$380.72

Upside / Downside-49.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $25.01B

Target EV/EBITDA multipleCurrent: 17.7×

Net Debt($B)Default: $63.96B

Results

Implied Equity Value / share$379.76

Current Price$380.72

Upside / Downside-0.3%

Implied EV$442.02B

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

Mult \ Net Debt	$31.96B	$47.96B	$63.96B	$79.96B	$95.96B
13.7x	$311.41	$295.34	$279.27	$263.20	$247.12
15.7x	$361.66	$345.59	$329.52	$313.44	$297.37
17.7x	$411.91	$395.84	$379.76	$363.69	$347.62
19.7x	$462.15	$446.08	$430.01	$413.94	$397.87
21.7x	$512.40	$496.33	$480.26	$464.19	$448.11

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