HMN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($44.42)
DCF	$57.45	+29.3%
Graham Number	$56.93	+28.2%
Reverse DCF	—	implied g: 3.7%
DDM	$29.66	-33.2%
EV/EBITDA	$44.16	-0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $197.05M

Near-term growth (yrs 1–5)(%)Rev: 6.3% / EPS: -5.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.78%

Computed WACC: 4.78%

Cost of equity (Re)4.54%(Rf 4.30% + β 0.04 × ERP 5.50%)

Cost of debt (Rd)6.38%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)52.54%

Debt weight (D/V)47.46%

Results

Intrinsic Value / share$231.60

Current Price$44.42

Upside / Downside+421.4%

Net Debt (used)$1.40B

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

WACC \ Near-term	-1.7%	2.3%	6.3%	10.3%	14.3%
7.0%	$58.75	$77.41	$99.09	$124.14	$152.95
8.0%	$41.99	$56.99	$74.38	$94.46	$117.53
9.0%	$30.39	$42.86	$57.30	$73.95	$93.05
10.0%	$21.88	$32.50	$44.78	$58.93	$75.14
11.0%	$15.37	$24.58	$35.23	$47.47	$61.48

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.95

Book Value / share($)Yahoo: $36.47

Results

Graham Number$56.93

Current Price$44.42

Margin of Safety+28.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.78%

Terminal growth rate(%)

Computed WACC: 4.78%

Cost of equity (Re)4.54%(Rf 4.30% + β 0.04 × ERP 5.50%)

Cost of debt (Rd)6.38%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)52.54%

Debt weight (D/V)47.46%

Results

Current Price$44.42

Implied Near-term FCF Growth-11.3%

Historical Revenue Growth6.3%

Historical Earnings Growth-5.4%

Base FCF (TTM)$197.05M

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: $1.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$29.66

Current Price$44.42

Upside / Downside-33.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $264.70M

Target EV/EBITDA multipleCurrent: 12.1×

Net Debt($B)Default: $1.40B

Results

Implied Equity Value / share$44.16

Current Price$44.42

Upside / Downside-0.6%

Implied EV$3.19B

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

Mult \ Net Debt	$1.40B	$1.40B	$1.40B	$1.40B	$1.40B
8.1x	$18.14	$18.14	$18.14	$18.14	$18.14
10.1x	$31.15	$31.15	$31.15	$31.15	$31.15
12.1x	$44.16	$44.16	$44.16	$44.16	$44.16
14.1x	$57.18	$57.18	$57.18	$57.18	$57.18
16.1x	$70.19	$70.19	$70.19	$70.19	$70.19

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