LAD — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($273.35)
DCF	$-67.94	-124.9%
Graham Number	$446.97	+63.5%
Reverse DCF	—	implied g: 13.2%
DDM	$45.32	-83.4%
EV/EBITDA	$264.55	-3.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $774.40M

Near-term growth (yrs 1–5)(%)Rev: 0.3% / EPS: -28.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.93%

Computed WACC: 4.93%

Cost of equity (Re)10.78%(Rf 4.30% + β 1.18 × ERP 5.50%)

Cost of debt (Rd)3.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)29.84%

Debt weight (D/V)70.16%

Results

Intrinsic Value / share$882.92

Current Price$273.35

Upside / Downside+223.0%

Net Debt (used)$15.24B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-63.12	$51.23	$184.26	$338.23	$515.56
8.0%	$-163.74	$-71.70	$35.21	$158.78	$300.94
9.0%	$-233.46	$-156.82	$-67.94	$34.67	$152.56
10.0%	$-284.64	$-219.26	$-143.55	$-56.26	$43.92
11.0%	$-323.83	$-267.03	$-201.34	$-125.71	$-39.01

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $31.60

Book Value / share($)Yahoo: $280.99

Results

Graham Number$446.97

Current Price$273.35

Margin of Safety+63.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.93%

Terminal growth rate(%)

Computed WACC: 4.93%

Cost of equity (Re)10.78%(Rf 4.30% + β 1.18 × ERP 5.50%)

Cost of debt (Rd)3.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)29.84%

Debt weight (D/V)70.16%

Results

Current Price$273.35

Implied Near-term FCF Growth-2.6%

Historical Revenue Growth0.3%

Historical Earnings Growth-28.4%

Base FCF (TTM)$774.40M

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: $2.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$45.32

Current Price$273.35

Upside / Downside-83.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.95B

Target EV/EBITDA multipleCurrent: 11.1×

Net Debt($B)Default: $15.24B

Results

Implied Equity Value / share$264.55

Current Price$273.35

Upside / Downside-3.2%

Implied EV$21.66B

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

Mult \ Net Debt	$7.24B	$11.24B	$15.24B	$19.24B	$23.24B
7.1x	$272.72	$107.77	$-57.18	$-222.13	$-387.08
9.1x	$433.58	$268.63	$103.68	$-61.26	$-226.21
11.1x	$594.45	$429.50	$264.55	$99.60	$-65.35
13.1x	$755.31	$590.36	$425.42	$260.47	$95.52
15.1x	$916.18	$751.23	$586.28	$421.33	$256.39

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