KR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($68.50)
DCF	$37.48	-45.3%
Graham Number	$17.71	-74.1%
Reverse DCF	—	implied g: 11.2%
DDM	$28.22	-58.8%
EV/EBITDA	$81.61	+19.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.56B

Near-term growth (yrs 1–5)(%)Rev: 0.7% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.85%

Computed WACC: 4.85%

Cost of equity (Re)7.54%(Rf 4.30% + β 0.59 × 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)64.30%

Debt weight (D/V)35.70%

Results

Intrinsic Value / share$164.54

Current Price$68.50

Upside / Downside+140.2%

Net Debt (used)$21.24B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$38.09	$52.58	$69.44	$88.96	$111.43
8.0%	$25.34	$37.01	$50.55	$66.21	$84.23
9.0%	$16.51	$26.22	$37.48	$50.49	$65.43
10.0%	$10.02	$18.30	$27.90	$38.96	$51.66
11.0%	$5.05	$12.25	$20.58	$30.16	$41.15

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.13

Book Value / share($)Yahoo: $12.34

Results

Graham Number$17.71

Current Price$68.50

Margin of Safety-74.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.85%

Terminal growth rate(%)

Computed WACC: 4.85%

Cost of equity (Re)7.54%(Rf 4.30% + β 0.59 × 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)64.30%

Debt weight (D/V)35.70%

Results

Current Price$68.50

Implied Near-term FCF Growth-4.7%

Historical Revenue Growth0.7%

Historical Earnings Growth—

Base FCF (TTM)$2.56B

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: $1.37

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$28.22

Current Price$68.50

Upside / Downside-58.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.13B

Target EV/EBITDA multipleCurrent: 9.0×

Net Debt($B)Default: $21.24B

Results

Implied Equity Value / share$81.61

Current Price$68.50

Upside / Downside+19.2%

Implied EV$72.89B

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

Mult \ Net Debt	$11.24B	$16.24B	$21.24B	$26.24B	$31.24B
5.0x	$46.04	$38.14	$30.23	$22.33	$14.43
7.0x	$71.73	$63.83	$55.92	$48.02	$40.12
9.0x	$97.42	$89.52	$81.61	$73.71	$65.81
11.0x	$123.11	$115.21	$107.30	$99.40	$91.50
13.0x	$148.80	$140.90	$132.99	$125.09	$117.19

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