HII — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($453.73)
DCF	$1089.35	+140.1%
Graham Number	$211.51	-53.4%
Reverse DCF	—	implied g: 13.7%
DDM	$113.71	-74.9%
EV/EBITDA	$453.72	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $686.00M

Near-term growth (yrs 1–5)(%)Rev: 15.7% / EPS: 28.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.67%

Computed WACC: 5.67%

Cost of equity (Re)6.11%(Rf 4.30% + β 0.33 × ERP 5.50%)

Cost of debt (Rd)3.89%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.66%

Debt weight (D/V)14.34%

Results

Intrinsic Value / share$2567.23

Current Price$453.73

Upside / Downside+465.8%

Net Debt (used)$2.21B

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

WACC \ Near-term	20.1%	24.1%	28.1%	32.1%	36.1%
7.0%	$1236.71	$1458.68	$1710.62	$1995.50	$2316.46
8.0%	$970.30	$1145.01	$1343.20	$1567.20	$1819.45
9.0%	$787.61	$929.96	$1091.35	$1273.66	$1478.88
10.0%	$655.03	$773.93	$908.67	$1060.78	$1231.93
11.0%	$554.79	$655.99	$770.60	$899.93	$1045.38

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $15.38

Book Value / share($)Yahoo: $129.28

Results

Graham Number$211.51

Current Price$453.73

Margin of Safety-53.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.67%

Terminal growth rate(%)

Computed WACC: 5.67%

Cost of equity (Re)6.11%(Rf 4.30% + β 0.33 × ERP 5.50%)

Cost of debt (Rd)3.89%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.66%

Debt weight (D/V)14.34%

Results

Current Price$453.73

Implied Near-term FCF Growth1.7%

Historical Revenue Growth15.7%

Historical Earnings Growth28.1%

Base FCF (TTM)$686.00M

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: $5.52

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$113.71

Current Price$453.73

Upside / Downside-74.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.13B

Target EV/EBITDA multipleCurrent: 17.7×

Net Debt($B)Default: $2.21B

Results

Implied Equity Value / share$453.72

Current Price$453.73

Upside / Downside-0.0%

Implied EV$20.01B

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

Mult \ Net Debt	$207.00M	$1.21B	$2.21B	$3.21B	$4.21B
13.7x	$389.51	$364.02	$338.54	$313.06	$287.58
15.7x	$447.10	$421.61	$396.13	$370.65	$345.17
17.7x	$504.69	$479.21	$453.72	$428.24	$402.76
19.7x	$562.28	$536.80	$511.31	$485.83	$460.35
21.7x	$619.87	$594.39	$568.90	$543.42	$517.94

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