KBR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($41.24)
DCF	$537.41	+1203.0%
Graham Number	$29.21	-29.2%
Reverse DCF	—	implied g: 11.1%
DDM	$13.60	-67.0%
EV/EBITDA	$41.45	+0.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $303.25M

Near-term growth (yrs 1–5)(%)Rev: -10.6% / EPS: 52.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.36%

Computed WACC: 4.36%

Cost of equity (Re)6.74%(Rf 4.30% + β 0.44 × 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)64.74%

Debt weight (D/V)35.26%

Results

Intrinsic Value / share$2429.40

Current Price$41.24

Upside / Downside+5790.2%

Net Debt (used)$2.38B

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

WACC \ Near-term	44.4%	48.4%	52.4%	56.4%	60.4%
7.0%	$659.08	$756.93	$865.84	$986.71	$1120.51
8.0%	$509.90	$585.95	$670.56	$764.46	$868.38
9.0%	$408.16	$469.34	$537.41	$612.92	$696.47
10.0%	$334.78	$385.24	$441.37	$503.63	$572.51
11.0%	$279.65	$322.07	$369.25	$421.56	$479.42

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.19

Book Value / share($)Yahoo: $11.89

Results

Graham Number$29.21

Current Price$41.24

Margin of Safety-29.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.36%

Terminal growth rate(%)

Computed WACC: 4.36%

Cost of equity (Re)6.74%(Rf 4.30% + β 0.44 × 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)64.74%

Debt weight (D/V)35.26%

Results

Current Price$41.24

Implied Near-term FCF Growth-7.9%

Historical Revenue Growth-10.6%

Historical Earnings Growth52.4%

Base FCF (TTM)$303.25M

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: $0.66

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$13.60

Current Price$41.24

Upside / Downside-67.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $685.00M

Target EV/EBITDA multipleCurrent: 11.2×

Net Debt($B)Default: $2.38B

Results

Implied Equity Value / share$41.45

Current Price$41.24

Upside / Downside+0.5%

Implied EV$7.65B

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

Mult \ Net Debt	$383.00M	$1.38B	$2.38B	$3.38B	$4.38B
7.2x	$35.62	$27.75	$19.87	$12.00	$4.12
9.2x	$46.41	$38.54	$30.66	$22.79	$14.91
11.2x	$57.20	$49.32	$41.45	$33.57	$25.70
13.2x	$67.99	$60.11	$52.24	$44.36	$36.49
15.2x	$78.78	$70.90	$63.03	$55.15	$47.28

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