INVH — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($26.15)
DCF	$17.71	-32.3%
Graham Number	$18.36	-29.8%
Reverse DCF	—	implied g: 9.1%
DDM	$24.72	-5.5%
EV/EBITDA	$26.21	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.09B

Near-term growth (yrs 1–5)(%)Rev: 4.3% / EPS: 2.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.82%

Computed WACC: 5.82%

Cost of equity (Re)8.89%(Rf 4.30% + β 0.83 × 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)65.53%

Debt weight (D/V)34.47%

Results

Intrinsic Value / share$48.07

Current Price$26.15

Upside / Downside+83.8%

Net Debt (used)$8.29B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$17.98	$24.36	$31.79	$40.39	$50.29
8.0%	$12.36	$17.50	$23.47	$30.37	$38.31
9.0%	$8.47	$12.74	$17.71	$23.44	$30.02
10.0%	$5.61	$9.26	$13.49	$18.36	$23.96
11.0%	$3.42	$6.59	$10.26	$14.48	$19.32

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.96

Book Value / share($)Yahoo: $15.60

Results

Graham Number$18.36

Current Price$26.15

Margin of Safety-29.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.82%

Terminal growth rate(%)

Computed WACC: 5.82%

Cost of equity (Re)8.89%(Rf 4.30% + β 0.83 × 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)65.53%

Debt weight (D/V)34.47%

Results

Current Price$26.15

Implied Near-term FCF Growth-1.7%

Historical Revenue Growth4.3%

Historical Earnings Growth2.4%

Base FCF (TTM)$1.09B

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: $1.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$24.72

Current Price$26.15

Upside / Downside-5.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.49B

Target EV/EBITDA multipleCurrent: 16.3×

Net Debt($B)Default: $8.29B

Results

Implied Equity Value / share$26.21

Current Price$26.15

Upside / Downside+0.2%

Implied EV$24.26B

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

Mult \ Net Debt	$4.29B	$6.29B	$8.29B	$10.29B	$12.29B
12.3x	$22.99	$19.71	$16.43	$13.15	$9.86
14.3x	$27.88	$24.60	$21.32	$18.04	$14.76
16.3x	$32.78	$29.49	$26.21	$22.93	$19.65
18.3x	$37.67	$34.39	$31.10	$27.82	$24.54
20.3x	$42.56	$39.28	$36.00	$32.71	$29.43

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