HIG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($139.21)
DCF	$2376.01	+1606.8%
Graham Number	$142.05	+2.0%
Reverse DCF	—	implied g: -11.6%
DDM	$49.44	-64.5%
EV/EBITDA	$143.06	+2.8%

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: 6.77%

Computed WACC: 6.77%

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)89.52%

Debt weight (D/V)10.48%

Results

Intrinsic Value / share$3954.80

Current Price$139.21

Upside / Downside+2741.0%

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%	$2776.34	$3219.12	$3717.25	$4275.77	$4900.05
8.0%	$2184.76	$2531.14	$2920.66	$3357.28	$3845.15
9.0%	$1780.18	$2060.68	$2376.01	$2729.34	$3124.04
10.0%	$1487.45	$1720.34	$1982.04	$2275.19	$2602.55
11.0%	$1266.80	$1463.85	$1685.20	$1933.04	$2209.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $13.32

Book Value / share($)Yahoo: $67.33

Results

Graham Number$142.05

Current Price$139.21

Margin of Safety+2.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.77%

Terminal growth rate(%)

Computed WACC: 6.77%

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)89.52%

Debt weight (D/V)10.48%

Results

Current Price$139.21

Implied Near-term FCF Growth-16.9%

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: $2.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$49.44

Current Price$139.21

Upside / Downside-64.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.23B

Target EV/EBITDA multipleCurrent: 7.6×

Net Debt($B)Default: $57.00M

Results

Implied Equity Value / share$143.06

Current Price$139.21

Upside / Downside+2.8%

Implied EV$39.52B

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

Mult \ Net Debt	-$1.94B	-$943.00M	$57.00M	$1.06B	$2.06B
3.6x	$74.45	$70.82	$67.20	$63.57	$59.95
5.6x	$112.38	$108.76	$105.13	$101.51	$97.88
7.6x	$150.31	$146.69	$143.06	$139.44	$135.81
9.6x	$188.24	$184.62	$180.99	$177.37	$173.74
11.6x	$226.18	$222.55	$218.93	$215.30	$211.68

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