ITW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($291.17)
DCF	$122.03	-58.1%
Graham Number	$51.41	-82.3%
Reverse DCF	—	implied g: 20.4%
DDM	$132.66	-54.4%
EV/EBITDA	$291.17	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.17B

Near-term growth (yrs 1–5)(%)Rev: 4.1% / EPS: 7.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.62%

Computed WACC: 9.62%

Cost of equity (Re)10.67%(Rf 4.30% + β 1.16 × 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)90.11%

Debt weight (D/V)9.89%

Results

Intrinsic Value / share$108.19

Current Price$291.17

Upside / Downside-62.8%

Net Debt (used)$8.36B

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

WACC \ Near-term	-0.7%	3.3%	7.3%	11.3%	15.3%
7.0%	$125.03	$155.71	$191.31	$232.40	$279.62
8.0%	$97.04	$121.66	$150.20	$183.10	$220.85
9.0%	$77.67	$98.12	$121.78	$149.03	$180.27
10.0%	$63.48	$80.88	$100.98	$124.11	$150.59
11.0%	$52.63	$67.71	$85.11	$105.10	$127.97

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.51

Book Value / share($)Yahoo: $11.18

Results

Graham Number$51.41

Current Price$291.17

Margin of Safety-82.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.62%

Terminal growth rate(%)

Computed WACC: 9.62%

Cost of equity (Re)10.67%(Rf 4.30% + β 1.16 × 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)90.11%

Debt weight (D/V)9.89%

Results

Current Price$291.17

Implied Near-term FCF Growth22.2%

Historical Revenue Growth4.1%

Historical Earnings Growth7.3%

Base FCF (TTM)$2.17B

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: $6.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$132.66

Current Price$291.17

Upside / Downside-54.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.66B

Target EV/EBITDA multipleCurrent: 19.8×

Net Debt($B)Default: $8.36B

Results

Implied Equity Value / share$291.17

Current Price$291.17

Upside / Downside+0.0%

Implied EV$92.28B

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

Mult \ Net Debt	$4.36B	$6.36B	$8.36B	$10.36B	$12.36B
15.8x	$240.44	$233.50	$226.57	$219.63	$212.69
17.8x	$272.75	$265.81	$258.87	$251.93	$244.99
19.8x	$305.05	$298.11	$291.17	$284.23	$277.29
21.8x	$337.36	$330.42	$323.48	$316.54	$309.60
23.8x	$369.66	$362.72	$355.78	$348.84	$341.90

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