KFY — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($61.74)
DCF	$209.74	+239.7%
Graham Number	$64.46	+4.4%
Reverse DCF	—	implied g: -2.3%
DDM	$39.55	-35.9%
EV/EBITDA	$62.31	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $261.09M

Near-term growth (yrs 1–5)(%)Rev: 7.0% / EPS: 19.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.93%

Computed WACC: 9.93%

Cost of equity (Re)11.63%(Rf 4.30% + β 1.33 × 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)85.39%

Debt weight (D/V)14.61%

Results

Intrinsic Value / share$180.14

Current Price$61.74

Upside / Downside+191.8%

Net Debt (used)-$232.88M

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

WACC \ Near-term	11.7%	15.7%	19.7%	23.7%	27.7%
7.0%	$227.23	$267.91	$314.46	$367.50	$427.71
8.0%	$183.11	$215.33	$252.19	$294.16	$341.76
9.0%	$152.76	$179.19	$209.39	$243.75	$282.71
10.0%	$130.66	$152.88	$178.24	$207.09	$239.77
11.0%	$113.89	$132.92	$154.63	$179.30	$207.23

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.91

Book Value / share($)Yahoo: $37.61

Results

Graham Number$64.46

Current Price$61.74

Margin of Safety+4.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.93%

Terminal growth rate(%)

Computed WACC: 9.93%

Cost of equity (Re)11.63%(Rf 4.30% + β 1.33 × 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)85.39%

Debt weight (D/V)14.61%

Results

Current Price$61.74

Implied Near-term FCF Growth-0.1%

Historical Revenue Growth7.0%

Historical Earnings Growth19.7%

Base FCF (TTM)$261.09M

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: $1.92

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$39.55

Current Price$61.74

Upside / Downside-35.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $407.88M

Target EV/EBITDA multipleCurrent: 7.4×

Net Debt($B)Default: -$232.88M

Results

Implied Equity Value / share$62.31

Current Price$61.74

Upside / Downside+0.9%

Implied EV$3.02B

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

Mult \ Net Debt	-$2.23B	-$1.23B	-$232.88M	$767.12M	$1.77B
3.4x	$69.36	$50.21	$31.05	$11.89	$-7.27
5.4x	$84.99	$65.83	$46.68	$27.52	$8.36
7.4x	$100.62	$81.46	$62.31	$43.15	$23.99
9.4x	$116.25	$97.09	$77.93	$58.78	$39.62
11.4x	$131.88	$112.72	$93.56	$74.40	$55.25

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