HP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($35.09)
DCF	$379.67	+982.0%
Graham Number	—	—
Reverse DCF	—	implied g: 12.9%
DDM	$20.60	-41.3%
EV/EBITDA	$36.60	+4.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $187.50M

Near-term growth (yrs 1–5)(%)Rev: 50.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.60%

Computed WACC: 4.60%

Cost of equity (Re)7.29%(Rf 4.30% + β 0.54 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)63.18%

Debt weight (D/V)36.82%

Results

Intrinsic Value / share$1505.48

Current Price$35.09

Upside / Downside+4190.3%

Net Debt (used)$1.76B

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

WACC \ Near-term	42.2%	46.2%	50.2%	54.2%	58.2%
7.0%	$463.79	$534.38	$613.07	$700.53	$797.48
8.0%	$358.22	$413.13	$474.32	$542.32	$617.68
9.0%	$286.19	$330.41	$379.67	$434.40	$495.05
10.0%	$234.22	$270.72	$311.38	$356.55	$406.58
11.0%	$195.16	$225.87	$260.07	$298.05	$340.12

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-3.18

Book Value / share($)Yahoo: $26.07

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$35.09

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.60%

Terminal growth rate(%)

Computed WACC: 4.60%

Cost of equity (Re)7.29%(Rf 4.30% + β 0.54 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)63.18%

Debt weight (D/V)36.82%

Results

Current Price$35.09

Implied Near-term FCF Growth-4.8%

Historical Revenue Growth50.2%

Historical Earnings Growth—

Base FCF (TTM)$187.50M

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: $1.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$20.60

Current Price$35.09

Upside / Downside-41.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $890.53M

Target EV/EBITDA multipleCurrent: 6.0×

Net Debt($B)Default: $1.76B

Results

Implied Equity Value / share$36.60

Current Price$35.09

Upside / Downside+4.3%

Implied EV$5.37B

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

Mult \ Net Debt	$1.76B	$1.76B	$1.76B	$1.76B	$1.76B
2.0x	$0.42	$0.42	$0.42	$0.42	$0.42
4.0x	$18.51	$18.51	$18.51	$18.51	$18.51
6.0x	$36.60	$36.60	$36.60	$36.60	$36.60
8.0x	$54.69	$54.69	$54.69	$54.69	$54.69
10.0x	$72.78	$72.78	$72.78	$72.78	$72.78

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