KGS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($56.86)
DCF	$221.81	+290.1%
Graham Number	$16.28	-71.4%
Reverse DCF	—	implied g: 13.6%
DDM	$38.73	-31.9%
EV/EBITDA	$56.98	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $258.49M

Near-term growth (yrs 1–5)(%)Rev: 7.5% / EPS: 32.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.15%

Computed WACC: 7.15%

Cost of equity (Re)10.98%(Rf 4.30% + β 1.22 × 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)65.13%

Debt weight (D/V)34.87%

Results

Intrinsic Value / share$346.17

Current Price$56.86

Upside / Downside+508.8%

Net Debt (used)$2.61B

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

WACC \ Near-term	24.6%	28.6%	32.6%	36.6%	40.6%
7.0%	$258.61	$306.62	$360.88	$422.00	$490.60
8.0%	$198.09	$235.76	$278.33	$326.25	$380.03
9.0%	$156.64	$187.24	$221.81	$260.71	$304.35
10.0%	$126.60	$152.09	$180.87	$213.24	$249.54
11.0%	$103.92	$125.56	$149.97	$177.42	$208.19

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.84

Book Value / share($)Yahoo: $14.02

Results

Graham Number$16.28

Current Price$56.86

Margin of Safety-71.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.15%

Terminal growth rate(%)

Computed WACC: 7.15%

Cost of equity (Re)10.98%(Rf 4.30% + β 1.22 × 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)65.13%

Debt weight (D/V)34.87%

Results

Current Price$56.86

Implied Near-term FCF Growth7.6%

Historical Revenue Growth7.5%

Historical Earnings Growth32.6%

Base FCF (TTM)$258.49M

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: $1.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$38.73

Current Price$56.86

Upside / Downside-31.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $688.81M

Target EV/EBITDA multipleCurrent: 10.9×

Net Debt($B)Default: $2.61B

Results

Implied Equity Value / share$56.98

Current Price$56.86

Upside / Downside+0.2%

Implied EV$7.50B

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

Mult \ Net Debt	$608.28M	$1.61B	$2.61B	$3.61B	$4.61B
6.9x	$48.17	$36.51	$24.86	$13.20	$1.54
8.9x	$64.23	$52.57	$40.92	$29.26	$17.60
10.9x	$80.29	$68.63	$56.98	$45.32	$33.66
12.9x	$96.35	$84.69	$73.04	$61.38	$49.72
14.9x	$112.41	$100.75	$89.10	$77.44	$65.78

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