HIW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($23.19)
DCF	$12.58	-45.8%
Graham Number	$26.42	+13.9%
Reverse DCF	—	implied g: 8.6%
DDM	$41.20	+77.7%
EV/EBITDA	$23.95	+3.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $284.18M

Near-term growth (yrs 1–5)(%)Rev: -1.6% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.20%

Computed WACC: 6.20%

Cost of equity (Re)10.25%(Rf 4.30% + β 1.08 × ERP 5.50%)

Cost of debt (Rd)4.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)41.68%

Debt weight (D/V)58.32%

Results

Intrinsic Value / share$47.34

Current Price$23.19

Upside / Downside+104.2%

Net Debt (used)$3.61B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$12.97	$22.22	$32.99	$45.46	$59.81
8.0%	$4.82	$12.27	$20.93	$30.93	$42.44
9.0%	$-0.82	$5.38	$12.58	$20.88	$30.43
10.0%	$-4.97	$0.33	$6.46	$13.52	$21.63
11.0%	$-8.14	$-3.54	$1.78	$7.90	$14.92

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.45

Book Value / share($)Yahoo: $21.40

Results

Graham Number$26.42

Current Price$23.19

Margin of Safety+13.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.20%

Terminal growth rate(%)

Computed WACC: 6.20%

Cost of equity (Re)10.25%(Rf 4.30% + β 1.08 × ERP 5.50%)

Cost of debt (Rd)4.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)41.68%

Debt weight (D/V)58.32%

Results

Current Price$23.19

Implied Near-term FCF Growth-0.6%

Historical Revenue Growth-1.6%

Historical Earnings Growth—

Base FCF (TTM)$284.18M

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: $2.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$41.20

Current Price$23.19

Upside / Downside+77.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $469.46M

Target EV/EBITDA multipleCurrent: 13.3×

Net Debt($B)Default: $3.61B

Results

Implied Equity Value / share$23.95

Current Price$23.19

Upside / Downside+3.3%

Implied EV$6.24B

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

Mult \ Net Debt	$1.61B	$2.61B	$3.61B	$4.61B	$5.61B
9.3x	$25.06	$15.96	$6.86	$-2.23	$-11.33
11.3x	$33.60	$24.50	$15.41	$6.31	$-2.79
13.3x	$42.14	$33.04	$23.95	$14.85	$5.75
15.3x	$50.68	$41.58	$32.49	$23.39	$14.29
17.3x	$59.22	$50.13	$41.03	$31.93	$22.84

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