HRB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($30.62)
DCF	$62.81	+105.1%
Graham Number	—	—
Reverse DCF	—	implied g: 2.7%
DDM	$34.61	+13.0%
EV/EBITDA	$30.62	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $420.79M

Near-term growth (yrs 1–5)(%)Rev: 11.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.31%

Computed WACC: 5.31%

Cost of equity (Re)6.20%(Rf 4.30% + β 0.35 × ERP 5.50%)

Cost of debt (Rd)5.23%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)56.94%

Debt weight (D/V)43.06%

Results

Intrinsic Value / share$180.63

Current Price$30.62

Upside / Downside+489.9%

Net Debt (used)$2.59B

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

WACC \ Near-term	3.1%	7.1%	11.1%	15.1%	19.1%
7.0%	$66.21	$83.02	$102.44	$124.77	$150.33
8.0%	$49.97	$63.41	$78.91	$96.71	$117.07
9.0%	$38.76	$49.87	$62.67	$77.36	$94.14
10.0%	$30.56	$39.98	$50.81	$63.23	$77.41
11.0%	$24.31	$32.44	$41.78	$52.48	$64.68

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.28

Book Value / share($)Yahoo: $-6.49

Results

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

Graham Number—

Current Price$30.62

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.31%

Terminal growth rate(%)

Computed WACC: 5.31%

Cost of equity (Re)6.20%(Rf 4.30% + β 0.35 × ERP 5.50%)

Cost of debt (Rd)5.23%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)56.94%

Debt weight (D/V)43.06%

Results

Current Price$30.62

Implied Near-term FCF Growth-9.5%

Historical Revenue Growth11.1%

Historical Earnings Growth—

Base FCF (TTM)$420.79M

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: $1.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$34.61

Current Price$30.62

Upside / Downside+13.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $961.41M

Target EV/EBITDA multipleCurrent: 6.7×

Net Debt($B)Default: $2.59B

Results

Implied Equity Value / share$30.62

Current Price$30.62

Upside / Downside+0.0%

Implied EV$6.47B

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

Mult \ Net Debt	$585.84M	$1.59B	$2.59B	$3.59B	$4.59B
2.7x	$16.06	$8.17	$0.28	$-7.61	$-15.49
4.7x	$31.23	$23.34	$15.45	$7.56	$-0.33
6.7x	$46.40	$38.51	$30.62	$22.73	$14.84
8.7x	$61.57	$53.68	$45.79	$37.90	$30.01
10.7x	$76.74	$68.85	$60.96	$53.07	$45.18

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