LCII — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($135.60)
DCF	$15682.40	+11465.2%
Graham Number	$97.87	-27.8%
Reverse DCF	—	implied g: 11.9%
DDM	$94.76	-30.1%
EV/EBITDA	$135.61	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $163.87M

Near-term growth (yrs 1–5)(%)Rev: 16.1% / EPS: 104.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.47%

Computed WACC: 9.47%

Cost of equity (Re)11.78%(Rf 4.30% + β 1.36 × ERP 5.50%)

Cost of debt (Rd)4.20%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)72.69%

Debt weight (D/V)27.31%

Results

Intrinsic Value / share$14199.38

Current Price$135.60

Upside / Downside+10371.5%

Net Debt (used)$1.01B

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

WACC \ Near-term	96.2%	100.2%	104.2%	108.2%	112.2%
7.0%	$21084.54	$23321.65	$25744.55	$28364.58	$31193.54
8.0%	$16174.66	$17890.59	$19748.97	$21758.47	$23928.15
9.0%	$12844.40	$14206.88	$15682.40	$17277.86	$19000.42
10.0%	$10456.74	$11565.83	$12766.90	$14065.54	$15467.60
11.0%	$8674.84	$9594.87	$10591.14	$11668.32	$12831.22

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.57

Book Value / share($)Yahoo: $56.23

Results

Graham Number$97.87

Current Price$135.60

Margin of Safety-27.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.47%

Terminal growth rate(%)

Computed WACC: 9.47%

Cost of equity (Re)11.78%(Rf 4.30% + β 1.36 × ERP 5.50%)

Cost of debt (Rd)4.20%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)72.69%

Debt weight (D/V)27.31%

Results

Current Price$135.60

Implied Near-term FCF Growth13.2%

Historical Revenue Growth16.1%

Historical Earnings Growth104.2%

Base FCF (TTM)$163.87M

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: $4.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$94.76

Current Price$135.60

Upside / Downside-30.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $401.15M

Target EV/EBITDA multipleCurrent: 10.7×

Net Debt($B)Default: $1.01B

Results

Implied Equity Value / share$135.61

Current Price$135.60

Upside / Downside+0.0%

Implied EV$4.29B

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

Mult \ Net Debt	$1.01B	$1.01B	$1.01B	$1.01B	$1.01B
6.7x	$69.30	$69.30	$69.30	$69.30	$69.30
8.7x	$102.46	$102.46	$102.46	$102.46	$102.46
10.7x	$135.61	$135.61	$135.61	$135.61	$135.61
12.7x	$168.77	$168.77	$168.77	$168.77	$168.77
14.7x	$201.92	$201.92	$201.92	$201.92	$201.92

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