L — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($112.19)
DCF	$39940.94	+35501.2%
Graham Number	$127.54	+13.7%
Reverse DCF	—	implied g: 4.2%
DDM	$5.15	-95.4%
EV/EBITDA	$116.83	+4.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.54B

Near-term growth (yrs 1–5)(%)Rev: 4.1% / EPS: 126.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.54%

Computed WACC: 6.54%

Cost of equity (Re)7.63%(Rf 4.30% + β 0.60 × ERP 5.50%)

Cost of debt (Rd)5.03%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.15%

Debt weight (D/V)29.85%

Results

Intrinsic Value / share$75773.06

Current Price$112.19

Upside / Downside+67439.9%

Net Debt (used)$2.69B

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

WACC \ Near-term	118.0%	122.0%	126.0%	130.0%	134.0%
7.0%	$55074.06	$60308.83	$65934.38	$71972.19	$78444.53
8.0%	$42132.88	$46136.21	$50438.31	$55055.61	$60005.11
9.0%	$33366.14	$36535.32	$39940.94	$43596.00	$47513.97
10.0%	$27089.36	$29661.35	$32425.17	$35391.36	$38570.85
11.0%	$22412.03	$24539.05	$26824.66	$29277.58	$31906.81

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.97

Book Value / share($)Yahoo: $90.71

Results

Graham Number$127.54

Current Price$112.19

Margin of Safety+13.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.54%

Terminal growth rate(%)

Computed WACC: 6.54%

Cost of equity (Re)7.63%(Rf 4.30% + β 0.60 × ERP 5.50%)

Cost of debt (Rd)5.03%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.15%

Debt weight (D/V)29.85%

Results

Current Price$112.19

Implied Near-term FCF Growth-3.3%

Historical Revenue Growth4.1%

Historical Earnings Growth126.0%

Base FCF (TTM)$1.54B

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: $0.25

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$5.15

Current Price$112.19

Upside / Downside-95.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.26B

Target EV/EBITDA multipleCurrent: 8.2×

Net Debt($B)Default: $2.69B

Results

Implied Equity Value / share$116.83

Current Price$112.19

Upside / Downside+4.1%

Implied EV$26.76B

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

Mult \ Net Debt	$692.00M	$1.69B	$2.69B	$3.69B	$4.69B
4.2x	$63.33	$58.47	$53.62	$48.77	$43.91
6.2x	$94.93	$90.08	$85.22	$80.37	$75.52
8.2x	$126.53	$121.68	$116.83	$111.97	$107.12
10.2x	$158.14	$153.28	$148.43	$143.58	$138.72
12.2x	$189.74	$184.89	$180.03	$175.18	$170.33

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