IVZ — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($26.13)
DCF	$28.97	+10.9%
Graham Number	—	—
Reverse DCF	—	implied g: 4.6%
DDM	$17.30	-33.8%
EV/EBITDA	$33.53	+28.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $745.70M

Near-term growth (yrs 1–5)(%)Rev: 6.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.26%

Computed WACC: 11.26%

Cost of equity (Re)13.43%(Rf 4.30% + β 1.66 × 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)83.86%

Debt weight (D/V)16.14%

Results

Intrinsic Value / share$20.61

Current Price$26.13

Upside / Downside-21.1%

Net Debt (used)$1.19B

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

WACC \ Near-term	-1.8%	2.2%	6.2%	10.2%	14.2%
7.0%	$29.46	$35.91	$43.40	$52.06	$62.03
8.0%	$23.67	$28.85	$34.87	$41.81	$49.79
9.0%	$19.66	$23.97	$28.97	$34.72	$41.33
10.0%	$16.73	$20.40	$24.64	$29.54	$35.14
11.0%	$14.48	$17.66	$21.34	$25.58	$30.42

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-1.59

Book Value / share($)Yahoo: $21.89

Results

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

Graham Number—

Current Price$26.13

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.26%

Terminal growth rate(%)

Computed WACC: 11.26%

Cost of equity (Re)13.43%(Rf 4.30% + β 1.66 × 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)83.86%

Debt weight (D/V)16.14%

Results

Current Price$26.13

Implied Near-term FCF Growth10.1%

Historical Revenue Growth6.2%

Historical Earnings Growth—

Base FCF (TTM)$745.70M

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: $0.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$17.30

Current Price$26.13

Upside / Downside-33.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.28B

Target EV/EBITDA multipleCurrent: 12.6×

Net Debt($B)Default: $1.19B

Results

Implied Equity Value / share$33.53

Current Price$26.13

Upside / Downside+28.3%

Implied EV$16.07B

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

Mult \ Net Debt	$1.19B	$1.19B	$1.19B	$1.19B	$1.19B
8.6x	$21.99	$21.99	$21.99	$21.99	$21.99
10.6x	$27.76	$27.76	$27.76	$27.76	$27.76
12.6x	$33.53	$33.53	$33.53	$33.53	$33.53
14.6x	$39.30	$39.30	$39.30	$39.30	$39.30
16.6x	$45.07	$45.07	$45.07	$45.07	$45.07

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