HWM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($262.53)
DCF	$90.96	-65.4%
Graham Number	$33.31	-87.3%
Reverse DCF	—	implied g: 39.0%
DDM	$9.48	-96.4%
EV/EBITDA	$262.53	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $917.25M

Near-term growth (yrs 1–5)(%)Rev: 14.6% / EPS: 20.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.96%

Computed WACC: 10.96%

Cost of equity (Re)11.16%(Rf 4.30% + β 1.25 × ERP 5.50%)

Cost of debt (Rd)5.53%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)97.05%

Debt weight (D/V)2.95%

Results

Intrinsic Value / share$65.41

Current Price$262.53

Upside / Downside-75.1%

Net Debt (used)$2.47B

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

WACC \ Near-term	12.3%	16.3%	20.3%	24.3%	28.3%
7.0%	$99.91	$119.20	$141.26	$166.38	$194.88
8.0%	$78.82	$94.09	$111.54	$131.41	$153.93
9.0%	$64.32	$76.83	$91.13	$107.38	$125.80
10.0%	$53.76	$64.27	$76.27	$89.91	$105.35
11.0%	$45.75	$54.75	$65.02	$76.67	$89.86

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.70

Book Value / share($)Yahoo: $13.33

Results

Graham Number$33.31

Current Price$262.53

Margin of Safety-87.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.96%

Terminal growth rate(%)

Computed WACC: 10.96%

Cost of equity (Re)11.16%(Rf 4.30% + β 1.25 × ERP 5.50%)

Cost of debt (Rd)5.53%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)97.05%

Debt weight (D/V)2.95%

Results

Current Price$262.53

Implied Near-term FCF Growth45.7%

Historical Revenue Growth14.6%

Historical Earnings Growth20.3%

Base FCF (TTM)$917.25M

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: $0.46

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$9.48

Current Price$262.53

Upside / Downside-96.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.39B

Target EV/EBITDA multipleCurrent: 45.1×

Net Debt($B)Default: $2.47B

Results

Implied Equity Value / share$262.53

Current Price$262.53

Upside / Downside+0.0%

Implied EV$107.73B

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

Mult \ Net Debt	$471.00M	$1.47B	$2.47B	$3.47B	$4.47B
41.1x	$243.69	$241.20	$238.71	$236.21	$233.72
43.1x	$255.61	$253.11	$250.62	$248.12	$245.63
45.1x	$267.52	$265.02	$262.53	$260.04	$257.54
47.1x	$279.43	$276.94	$274.44	$271.95	$269.45
49.1x	$291.34	$288.85	$286.35	$283.86	$281.37

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