HIG-PG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($25.10)
DCF	$1827.13	+7179.4%
Graham Number	$105.17	+319.0%
Reverse DCF	—	implied g: -20.0%
DDM	$30.90	+23.1%
EV/EBITDA	$20.27	-19.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.81B

Near-term growth (yrs 1–5)(%)Rev: 6.7% / EPS: 38.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.44%

Computed WACC: 6.44%

Cost of equity (Re)7.14%(Rf 4.30% + β 0.52 × ERP 5.50%)

Cost of debt (Rd)4.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)80.41%

Debt weight (D/V)19.59%

Results

Intrinsic Value / share$3341.45

Current Price$25.10

Upside / Downside+13212.5%

Net Debt (used)$57.00M

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

WACC \ Near-term	30.2%	34.2%	38.2%	42.2%	46.2%
7.0%	$2134.97	$2475.47	$2858.52	$3288.02	$3768.08
8.0%	$1680.06	$1946.42	$2245.96	$2581.71	$2956.88
9.0%	$1368.94	$1584.64	$1827.13	$2098.84	$2402.35
10.0%	$1143.83	$1322.92	$1524.17	$1749.60	$2001.33
11.0%	$974.16	$1125.69	$1295.90	$1486.49	$1699.25

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.30

Book Value / share($)Yahoo: $67.33

Results

Graham Number$105.17

Current Price$25.10

Margin of Safety+319.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.44%

Terminal growth rate(%)

Computed WACC: 6.44%

Cost of equity (Re)7.14%(Rf 4.30% + β 0.52 × ERP 5.50%)

Cost of debt (Rd)4.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)80.41%

Debt weight (D/V)19.59%

Results

Current Price$25.10

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth6.7%

Historical Earnings Growth38.2%

Base FCF (TTM)$5.81B

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: $1.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$30.90

Current Price$25.10

Upside / Downside+23.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.23B

Target EV/EBITDA multipleCurrent: 1.4×

Net Debt($B)Default: $57.00M

Results

Implied Equity Value / share$20.27

Current Price$25.10

Upside / Downside-19.2%

Implied EV$7.33B

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

Mult \ Net Debt	-$1.94B	-$943.00M	$57.00M	$1.06B	$2.06B
-2.6x	$-32.49	$-35.28	$-38.06	$-40.85	$-43.64
-0.6x	$-3.32	$-6.11	$-8.90	$-11.68	$-14.47
1.4x	$25.85	$23.06	$20.27	$17.49	$14.70
3.4x	$55.02	$52.23	$49.44	$46.66	$43.87
5.4x	$84.19	$81.40	$78.61	$75.82	$73.04

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