ITT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($198.99)
DCF	$159.20	-20.0%
Graham Number	$80.85	-59.4%
Reverse DCF	—	implied g: 17.6%
DDM	$31.72	-84.1%
EV/EBITDA	$202.49	+1.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $444.99M

Near-term growth (yrs 1–5)(%)Rev: 13.5% / EPS: 6.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.20%

Computed WACC: 11.20%

Cost of equity (Re)11.77%(Rf 4.30% + β 1.36 × 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)95.18%

Debt weight (D/V)4.82%

Results

Intrinsic Value / share$118.32

Current Price$198.99

Upside / Downside-40.5%

Net Debt (used)-$875.70M

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

WACC \ Near-term	5.5%	9.5%	13.5%	17.5%	21.5%
7.0%	$167.76	$197.85	$232.52	$272.28	$317.67
8.0%	$137.68	$161.66	$189.26	$220.88	$256.95
9.0%	$116.94	$136.71	$159.45	$185.47	$215.14
10.0%	$101.79	$118.51	$137.70	$159.66	$184.66
11.0%	$90.26	$104.65	$121.16	$140.03	$161.50

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.11

Book Value / share($)Yahoo: $47.55

Results

Graham Number$80.85

Current Price$198.99

Margin of Safety-59.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.20%

Terminal growth rate(%)

Computed WACC: 11.20%

Cost of equity (Re)11.77%(Rf 4.30% + β 1.36 × 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)95.18%

Debt weight (D/V)4.82%

Results

Current Price$198.99

Implied Near-term FCF Growth23.8%

Historical Revenue Growth13.5%

Historical Earnings Growth6.1%

Base FCF (TTM)$444.99M

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: $1.54

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$31.72

Current Price$198.99

Upside / Downside-84.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $861.20M

Target EV/EBITDA multipleCurrent: 19.2×

Net Debt($B)Default: -$875.70M

Results

Implied Equity Value / share$202.49

Current Price$198.99

Upside / Downside+1.8%

Implied EV$16.54B

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

Mult \ Net Debt	-$2.88B	-$1.88B	-$875.70M	$124.30M	$1.12B
15.2x	$185.69	$174.06	$162.43	$150.81	$139.18
17.2x	$205.72	$194.09	$182.46	$170.83	$159.21
19.2x	$225.75	$214.12	$202.49	$190.86	$179.23
21.2x	$245.77	$234.15	$222.52	$210.89	$199.26
23.2x	$265.80	$254.17	$242.55	$230.92	$219.29

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