KMB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($109.74)
DCF	$48.05	-56.2%
Graham Number	$22.24	-79.7%
Reverse DCF	—	implied g: 22.2%
DDM	$105.47	-3.9%
EV/EBITDA	$110.13	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $912.88M

Near-term growth (yrs 1–5)(%)Rev: -0.6% / EPS: 11.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.34%

Computed WACC: 5.34%

Cost of equity (Re)5.82%(Rf 4.30% + β 0.28 × ERP 5.50%)

Cost of debt (Rd)3.84%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)82.78%

Debt weight (D/V)17.22%

Results

Intrinsic Value / share$143.52

Current Price$109.74

Upside / Downside+30.8%

Net Debt (used)$6.80B

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

WACC \ Near-term	3.0%	7.0%	11.0%	15.0%	19.0%
7.0%	$50.94	$64.82	$80.85	$99.29	$120.39
8.0%	$37.55	$48.64	$61.44	$76.14	$92.95
9.0%	$28.31	$37.48	$48.05	$60.18	$74.04
10.0%	$21.55	$29.32	$38.27	$48.52	$60.23
11.0%	$16.40	$23.10	$30.82	$39.65	$49.73

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.86

Book Value / share($)Yahoo: $4.53

Results

Graham Number$22.24

Current Price$109.74

Margin of Safety-79.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.34%

Terminal growth rate(%)

Computed WACC: 5.34%

Cost of equity (Re)5.82%(Rf 4.30% + β 0.28 × ERP 5.50%)

Cost of debt (Rd)3.84%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)82.78%

Debt weight (D/V)17.22%

Results

Current Price$109.74

Implied Near-term FCF Growth7.4%

Historical Revenue Growth-0.6%

Historical Earnings Growth11.0%

Base FCF (TTM)$912.88M

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: $5.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$105.47

Current Price$109.74

Upside / Downside-3.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.20B

Target EV/EBITDA multipleCurrent: 13.6×

Net Debt($B)Default: $6.80B

Results

Implied Equity Value / share$110.13

Current Price$109.74

Upside / Downside+0.4%

Implied EV$43.36B

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

Mult \ Net Debt	$2.80B	$4.80B	$6.80B	$8.80B	$10.80B
9.6x	$83.63	$77.60	$71.58	$65.55	$59.53
11.6x	$102.90	$96.88	$90.85	$84.83	$78.80
13.6x	$122.18	$116.15	$110.13	$104.10	$98.08
15.6x	$141.45	$135.43	$129.40	$123.38	$117.35
17.6x	$160.73	$154.70	$148.68	$142.65	$136.63

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