HEI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($329.25)
DCF	$339.20	+3.0%
Graham Number	$59.73	-81.9%
Reverse DCF	—	implied g: 13.9%
DDM	$4.94	-98.5%
EV/EBITDA	$842.90	+156.0%

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: 9.43%

Computed WACC: 9.43%

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)94.82%

Debt weight (D/V)5.18%

Results

Intrinsic Value / share$313.24

Current Price$329.25

Upside / Downside-4.9%

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%	$362.11	$438.54	$526.50	$627.28	$742.24
8.0%	$284.77	$345.63	$415.60	$495.69	$586.98
9.0%	$231.46	$281.60	$339.20	$405.08	$480.10
10.0%	$192.55	$234.90	$283.49	$339.02	$402.21
11.0%	$162.94	$199.38	$241.15	$288.83	$343.06

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.91

Book Value / share($)Yahoo: $32.30

Results

Graham Number$59.73

Current Price$329.25

Margin of Safety-81.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.43%

Terminal growth rate(%)

Computed WACC: 9.43%

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)94.82%

Debt weight (D/V)5.18%

Results

Current Price$329.25

Implied Near-term FCF Growth15.2%

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$329.25

Upside / Downside-98.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.26B

Target EV/EBITDA multipleCurrent: 38.5×

Net Debt($B)Default: $2.25B

Results

Implied Equity Value / share$842.90

Current Price$329.25

Upside / Downside+156.0%

Implied EV$48.73B

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

Mult \ Net Debt	$246.71M	$1.25B	$2.25B	$3.25B	$4.25B
34.5x	$787.42	$769.29	$751.15	$733.02	$714.89
36.5x	$833.30	$815.16	$797.03	$778.89	$760.76
38.5x	$879.17	$861.04	$842.90	$824.77	$806.63
40.5x	$925.05	$906.91	$888.78	$870.64	$852.51
42.5x	$970.92	$952.79	$934.65	$916.52	$898.38

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