HUM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($187.28)
DCF	$332.84	+77.7%
Graham Number	$179.96	-3.9%
Reverse DCF	—	implied g: -1.4%
DDM	$72.92	-61.1%
EV/EBITDA	$187.94	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.32B

Near-term growth (yrs 1–5)(%)Rev: 11.3% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.24%

Computed WACC: 4.24%

Cost of equity (Re)6.73%(Rf 4.30% + β 0.44 × 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)62.99%

Debt weight (D/V)37.01%

Results

Intrinsic Value / share$1161.38

Current Price$187.28

Upside / Downside+520.1%

Net Debt (used)-$6.63B

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

WACC \ Near-term	3.3%	7.3%	11.3%	15.3%	19.3%
7.0%	$345.53	$401.87	$466.94	$541.73	$627.32
8.0%	$290.94	$335.94	$387.86	$447.47	$515.62
9.0%	$253.25	$290.45	$333.31	$382.47	$438.63
10.0%	$225.69	$257.20	$293.47	$335.03	$382.45
11.0%	$204.69	$231.88	$263.14	$298.92	$339.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $9.83

Book Value / share($)Yahoo: $146.42

Results

Graham Number$179.96

Current Price$187.28

Margin of Safety-3.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.24%

Terminal growth rate(%)

Computed WACC: 4.24%

Cost of equity (Re)6.73%(Rf 4.30% + β 0.44 × 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)62.99%

Debt weight (D/V)37.01%

Results

Current Price$187.28

Implied Near-term FCF Growth-18.6%

Historical Revenue Growth11.3%

Historical Earnings Growth—

Base FCF (TTM)$1.32B

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: $3.54

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$72.92

Current Price$187.28

Upside / Downside-61.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.57B

Target EV/EBITDA multipleCurrent: 4.5×

Net Debt($B)Default: -$6.63B

Results

Implied Equity Value / share$187.94

Current Price$187.28

Upside / Downside+0.4%

Implied EV$16.03B

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

Mult \ Net Debt	-$10.63B	-$8.63B	-$6.63B	-$4.63B	-$2.63B
0.5x	$102.73	$86.15	$69.56	$52.98	$36.39
2.5x	$161.92	$145.34	$128.75	$112.17	$95.58
4.5x	$221.11	$204.53	$187.94	$171.36	$154.77
6.5x	$280.30	$263.71	$247.13	$230.55	$213.96
8.5x	$339.49	$322.90	$306.32	$289.74	$273.15

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