KSS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($15.64)
DCF	$48.98	+213.2%
Graham Number	$36.96	+136.3%
Reverse DCF	—	implied g: -1.2%
DDM	$10.30	-34.1%
EV/EBITDA	$16.37	+4.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $692.25M

Near-term growth (yrs 1–5)(%)Rev: -3.6% / EPS: -64.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 2.50%

Computed WACC: 2.50%

Cost of equity (Re)12.21%(Rf 4.30% + β 1.44 × 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)20.51%

Debt weight (D/V)79.49%

Results

Intrinsic Value / share—

Current Price$15.64

Upside / Downside—

Net Debt (used)$6.66B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$49.91	$72.01	$97.71	$127.46	$161.73
8.0%	$30.47	$48.26	$68.91	$92.79	$120.26
9.0%	$17.00	$31.81	$48.98	$68.81	$91.59
10.0%	$7.11	$19.74	$34.37	$51.24	$70.60
11.0%	$-0.46	$10.51	$23.21	$37.82	$54.57

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.73

Book Value / share($)Yahoo: $35.09

Results

Graham Number$36.96

Current Price$15.64

Margin of Safety+136.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 2.50%

Terminal growth rate(%)

Computed WACC: 2.50%

Cost of equity (Re)12.21%(Rf 4.30% + β 1.44 × 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)20.51%

Debt weight (D/V)79.49%

Results

Current Price$15.64

Implied Near-term FCF Growth65.0%

Historical Revenue Growth-3.6%

Historical Earnings Growth-64.7%

Base FCF (TTM)$692.25M

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: $0.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$10.30

Current Price$15.64

Upside / Downside-34.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.20B

Target EV/EBITDA multipleCurrent: 7.1×

Net Debt($B)Default: $6.66B

Results

Implied Equity Value / share$16.37

Current Price$15.64

Upside / Downside+4.7%

Implied EV$8.50B

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

Mult \ Net Debt	$2.66B	$4.66B	$6.66B	$8.66B	$10.66B
3.1x	$9.31	$-8.51	$-26.34	$-44.17	$-61.99
5.1x	$30.67	$12.84	$-4.98	$-22.81	$-40.64
7.1x	$52.03	$34.20	$16.37	$-1.45	$-19.28
9.1x	$73.39	$55.56	$37.73	$19.90	$2.08
11.1x	$94.74	$76.91	$59.09	$41.26	$23.43

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