HUBB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($498.64)
DCF	$337.88	-32.2%
Graham Number	$163.98	-67.1%
Reverse DCF	—	implied g: 20.0%
DDM	$117.01	-76.5%
EV/EBITDA	$517.18	+3.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $680.91M

Near-term growth (yrs 1–5)(%)Rev: 11.9% / EPS: 13.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.94%

Computed WACC: 8.94%

Cost of equity (Re)9.78%(Rf 4.30% + β 1.00 × 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)91.42%

Debt weight (D/V)8.58%

Results

Intrinsic Value / share$341.72

Current Price$498.64

Upside / Downside-31.5%

Net Debt (used)$1.99B

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

WACC \ Near-term	5.8%	9.8%	13.8%	17.8%	21.8%
7.0%	$359.32	$434.91	$521.97	$621.77	$735.69
8.0%	$283.46	$343.69	$412.98	$492.33	$582.84
9.0%	$231.15	$280.81	$337.88	$403.18	$477.60
10.0%	$192.96	$234.92	$283.10	$338.18	$400.89
11.0%	$163.90	$200.02	$241.45	$288.77	$342.61

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $16.54

Book Value / share($)Yahoo: $72.26

Results

Graham Number$163.98

Current Price$498.64

Margin of Safety-67.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.94%

Terminal growth rate(%)

Computed WACC: 8.94%

Cost of equity (Re)9.78%(Rf 4.30% + β 1.00 × 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)91.42%

Debt weight (D/V)8.58%

Results

Current Price$498.64

Implied Near-term FCF Growth19.9%

Historical Revenue Growth11.9%

Historical Earnings Growth13.8%

Base FCF (TTM)$680.91M

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: $5.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$117.01

Current Price$498.64

Upside / Downside-76.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.41B

Target EV/EBITDA multipleCurrent: 20.9×

Net Debt($B)Default: $1.99B

Results

Implied Equity Value / share$517.18

Current Price$498.64

Upside / Downside+3.7%

Implied EV$29.48B

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

Mult \ Net Debt	$1.99B	$1.99B	$1.99B	$1.99B	$1.99B
16.9x	$410.96	$410.96	$410.96	$410.96	$410.96
18.9x	$464.07	$464.07	$464.07	$464.07	$464.07
20.9x	$517.18	$517.18	$517.18	$517.18	$517.18
22.9x	$570.29	$570.29	$570.29	$570.29	$570.29
24.9x	$623.40	$623.40	$623.40	$623.40	$623.40

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