IOSP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($77.04)
DCF	$22.08	-71.3%
Graham Number	$74.99	-2.7%
Reverse DCF	—	implied g: 35.0%
DDM	$35.84	-53.5%
EV/EBITDA	$77.31	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $17.50M

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

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.88%

Computed WACC: 8.88%

Cost of equity (Re)9.13%(Rf 4.30% + β 0.88 × 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)97.31%

Debt weight (D/V)2.69%

Results

Intrinsic Value / share$22.31

Current Price$77.04

Upside / Downside-71.0%

Net Debt (used)-$239.80M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$22.18	$24.71	$27.66	$31.06	$34.98
8.0%	$19.96	$21.99	$24.36	$27.09	$30.24
9.0%	$18.42	$20.11	$22.08	$24.35	$26.95
10.0%	$17.28	$18.73	$20.41	$22.34	$24.55
11.0%	$16.42	$17.67	$19.13	$20.80	$22.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.67

Book Value / share($)Yahoo: $53.52

Results

Graham Number$74.99

Current Price$77.04

Margin of Safety-2.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.88%

Terminal growth rate(%)

Computed WACC: 8.88%

Cost of equity (Re)9.13%(Rf 4.30% + β 0.88 × 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)97.31%

Debt weight (D/V)2.69%

Results

Current Price$77.04

Implied Near-term FCF Growth34.6%

Historical Revenue Growth-2.4%

Historical Earnings Growth—

Base FCF (TTM)$17.50M

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: $1.74

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$35.84

Current Price$77.04

Upside / Downside-53.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $199.60M

Target EV/EBITDA multipleCurrent: 8.4×

Net Debt($B)Default: -$239.80M

Results

Implied Equity Value / share$77.31

Current Price$77.04

Upside / Downside+0.4%

Implied EV$1.68B

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

Mult \ Net Debt	-$2.24B	-$1.24B	-$239.80M	$760.20M	$1.76B
4.4x	$125.81	$85.45	$45.09	$4.73	$-35.63
6.4x	$141.92	$101.56	$61.20	$20.84	$-19.52
8.4x	$158.03	$117.67	$77.31	$36.95	$-3.40
10.4x	$174.14	$133.78	$93.42	$53.07	$12.71
12.4x	$190.25	$149.89	$109.53	$69.18	$28.82

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