IP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($42.89)
DCF	$-40.23	-193.8%
Graham Number	—	—
Reverse DCF	—	—
DDM	$38.11	-11.1%
EV/EBITDA	$43.50	+1.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$156.38M

Near-term growth (yrs 1–5)(%)Rev: 31.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.92%

Computed WACC: 8.92%

Cost of equity (Re)10.19%(Rf 4.30% + β 1.07 × ERP 5.50%)

Cost of debt (Rd)7.76%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)68.70%

Debt weight (D/V)31.30%

Results

Intrinsic Value / share$-40.61

Current Price$42.89

Upside / Downside-194.7%

Net Debt (used)$9.17B

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

WACC \ Near-term	23.1%	27.1%	31.1%	35.1%	39.1%
7.0%	$-43.47	$-47.85	$-52.81	$-58.40	$-64.69
8.0%	$-38.03	$-41.47	$-45.36	$-49.76	$-54.69
9.0%	$-34.30	$-37.10	$-40.27	$-43.83	$-47.84
10.0%	$-31.60	$-33.93	$-36.57	$-39.54	$-42.88
11.0%	$-29.56	$-31.54	$-33.78	$-36.30	$-39.13

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-5.61

Book Value / share($)Yahoo: $28.11

Results

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

Graham Number—

Current Price$42.89

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.92%

Terminal growth rate(%)

Computed WACC: 8.92%

Cost of equity (Re)10.19%(Rf 4.30% + β 1.07 × ERP 5.50%)

Cost of debt (Rd)7.76%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)68.70%

Debt weight (D/V)31.30%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$42.89

Implied Near-term FCF Growth—

Historical Revenue Growth31.1%

Historical Earnings Growth—

Base FCF (TTM)-$156.38M

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: $1.85

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$38.11

Current Price$42.89

Upside / Downside-11.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.07B

Target EV/EBITDA multipleCurrent: 10.5×

Net Debt($B)Default: $9.17B

Results

Implied Equity Value / share$43.50

Current Price$42.89

Upside / Downside+1.4%

Implied EV$32.14B

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

Mult \ Net Debt	$5.17B	$7.17B	$9.17B	$11.17B	$13.17B
6.5x	$27.79	$24.01	$20.22	$16.43	$12.64
8.5x	$39.43	$35.65	$31.86	$28.07	$24.28
10.5x	$51.07	$47.29	$43.50	$39.71	$35.92
12.5x	$62.71	$58.92	$55.14	$51.35	$47.56
14.5x	$74.35	$70.56	$66.78	$62.99	$59.20

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