HEI-A — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($246.39)
DCF	$221.97	-9.9%
Graham Number	$59.67	-75.8%
Reverse DCF	—	implied g: 16.0%
DDM	$4.94	-98.0%
EV/EBITDA	$414.38	+68.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $690.76M

Near-term growth (yrs 1–5)(%)Rev: 14.4% / EPS: 12.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.34%

Computed WACC: 9.34%

Cost of equity (Re)9.94%(Rf 4.30% + β 1.02 × ERP 5.50%)

Cost of debt (Rd)0.17%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)93.86%

Debt weight (D/V)6.14%

Results

Intrinsic Value / share$208.35

Current Price$246.39

Upside / Downside-15.4%

Net Debt (used)$2.25B

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

WACC \ Near-term	6.4%	10.4%	14.4%	18.4%	22.4%
7.0%	$236.96	$286.97	$344.54	$410.48	$485.71
8.0%	$186.35	$226.17	$271.96	$324.37	$384.11
9.0%	$151.46	$184.28	$221.97	$265.07	$314.17
10.0%	$126.00	$153.71	$185.51	$221.85	$263.20
11.0%	$106.63	$130.47	$157.80	$189.01	$224.49

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.90

Book Value / share($)Yahoo: $32.30

Results

Graham Number$59.67

Current Price$246.39

Margin of Safety-75.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.34%

Terminal growth rate(%)

Computed WACC: 9.34%

Cost of equity (Re)9.94%(Rf 4.30% + β 1.02 × ERP 5.50%)

Cost of debt (Rd)0.17%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)93.86%

Debt weight (D/V)6.14%

Results

Current Price$246.39

Implied Near-term FCF Growth17.0%

Historical Revenue Growth14.4%

Historical Earnings Growth12.5%

Base FCF (TTM)$690.76M

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: $0.24

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$4.94

Current Price$246.39

Upside / Downside-98.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.26B

Target EV/EBITDA multipleCurrent: 29.4×

Net Debt($B)Default: $2.25B

Results

Implied Equity Value / share$414.38

Current Price$246.39

Upside / Downside+68.2%

Implied EV$37.17B

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

Mult \ Net Debt	$246.71M	$1.25B	$2.25B	$3.25B	$4.25B
25.4x	$378.08	$366.21	$354.34	$342.47	$330.61
27.4x	$408.09	$396.23	$384.36	$372.49	$360.63
29.4x	$438.11	$426.25	$414.38	$402.51	$390.65
31.4x	$468.13	$456.27	$444.40	$432.53	$420.66
33.4x	$498.15	$486.28	$474.42	$462.55	$450.68

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