IEP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($8.06)
DCF	$-8.71	-208.0%
Graham Number	—	—
Reverse DCF	—	implied g: 66.5%
DDM	$41.20	+411.2%
EV/EBITDA	$9.72	+20.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $22.88M

Near-term growth (yrs 1–5)(%)Rev: 5.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.73%

Computed WACC: 6.73%

Cost of equity (Re)8.38%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)7.10%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)40.52%

Debt weight (D/V)59.48%

Results

Intrinsic Value / share$-8.32

Current Price$8.06

Upside / Downside-203.3%

Net Debt (used)$5.65B

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

WACC \ Near-term	-2.1%	1.9%	5.9%	9.9%	13.9%
7.0%	$-8.70	$-8.56	$-8.39	$-8.20	$-7.97
8.0%	$-8.83	$-8.71	$-8.58	$-8.42	$-8.25
9.0%	$-8.92	$-8.82	$-8.71	$-8.58	$-8.43
10.0%	$-8.98	$-8.90	$-8.80	$-8.70	$-8.57
11.0%	$-9.03	$-8.96	$-8.88	$-8.78	$-8.68

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.73

Book Value / share($)Yahoo: $4.28

Results

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

Graham Number—

Current Price$8.06

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.73%

Terminal growth rate(%)

Computed WACC: 6.73%

Cost of equity (Re)8.38%(Rf 4.30% + β 0.74 × ERP 5.50%)

Cost of debt (Rd)7.10%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)40.52%

Debt weight (D/V)59.48%

Results

Current Price$8.06

Implied Near-term FCF Growth55.1%

Historical Revenue Growth5.9%

Historical Earnings Growth—

Base FCF (TTM)$22.88M

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: $2.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$41.20

Current Price$8.06

Upside / Downside+411.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $594.00M

Target EV/EBITDA multipleCurrent: 19.3×

Net Debt($B)Default: $5.65B

Results

Implied Equity Value / share$9.72

Current Price$8.06

Upside / Downside+20.6%

Implied EV$11.48B

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

Mult \ Net Debt	$3.65B	$4.65B	$5.65B	$6.65B	$7.65B
15.3x	$9.09	$7.43	$5.76	$4.09	$2.43
17.3x	$11.07	$9.41	$7.74	$6.07	$4.41
19.3x	$13.05	$11.39	$9.72	$8.05	$6.39
21.3x	$15.03	$13.37	$11.70	$10.03	$8.37
23.3x	$17.01	$15.34	$13.68	$12.01	$10.35

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