HSIC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($81.37)
DCF	$66.35	-18.5%
Graham Number	$44.71	-45.1%
Reverse DCF	—	implied g: 16.2%
DDM	—	—
EV/EBITDA	$92.44	+13.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $383.00M

Near-term growth (yrs 1–5)(%)Rev: 7.7% / EPS: 13.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.31%

Computed WACC: 8.31%

Cost of equity (Re)9.21%(Rf 4.30% + β 0.89 × ERP 5.50%)

Cost of debt (Rd)7.25%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)74.16%

Debt weight (D/V)25.84%

Results

Intrinsic Value / share$78.63

Current Price$81.37

Upside / Downside-3.4%

Net Debt (used)$3.28B

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

WACC \ Near-term	5.6%	9.6%	13.6%	17.6%	21.6%
7.0%	$71.63	$90.62	$112.49	$137.58	$166.21
8.0%	$52.63	$67.76	$85.17	$105.12	$127.87
9.0%	$39.53	$52.00	$66.35	$82.77	$101.48
10.0%	$29.96	$40.50	$52.61	$66.46	$82.24
11.0%	$22.67	$31.75	$42.17	$54.07	$67.61

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.17

Book Value / share($)Yahoo: $28.03

Results

Graham Number$44.71

Current Price$81.37

Margin of Safety-45.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.31%

Terminal growth rate(%)

Computed WACC: 8.31%

Cost of equity (Re)9.21%(Rf 4.30% + β 0.89 × ERP 5.50%)

Cost of debt (Rd)7.25%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)74.16%

Debt weight (D/V)25.84%

Results

Current Price$81.37

Implied Near-term FCF Growth14.0%

Historical Revenue Growth7.7%

Historical Earnings Growth13.6%

Base FCF (TTM)$383.00M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$81.37

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.02B

Target EV/EBITDA multipleCurrent: 13.8×

Net Debt($B)Default: $3.28B

Results

Implied Equity Value / share$92.44

Current Price$81.37

Upside / Downside+13.6%

Implied EV$14.17B

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

Mult \ Net Debt	$1.28B	$2.28B	$3.28B	$4.28B	$5.28B
9.8x	$74.67	$66.18	$57.68	$49.19	$40.69
11.8x	$92.05	$83.55	$75.06	$66.57	$58.07
13.8x	$109.43	$100.93	$92.44	$83.95	$75.45
15.8x	$126.81	$118.31	$109.82	$101.33	$92.83
17.8x	$144.19	$135.69	$127.20	$118.70	$110.21

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