LECO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($287.09)
DCF	$73.47	-74.4%
Graham Number	$75.01	-73.9%
Reverse DCF	—	implied g: 26.5%
DDM	$65.10	-77.3%
EV/EBITDA	$285.93	-0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $281.08M

Near-term growth (yrs 1–5)(%)Rev: 5.5% / EPS: -0.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.33%

Computed WACC: 10.33%

Cost of equity (Re)11.21%(Rf 4.30% + β 1.26 × 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)92.16%

Debt weight (D/V)7.84%

Results

Intrinsic Value / share$57.64

Current Price$287.09

Upside / Downside-79.9%

Net Debt (used)$1.04B

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

WACC \ Near-term	-2.5%	1.5%	5.5%	9.5%	13.5%
7.0%	$74.70	$93.56	$115.50	$140.87	$170.08
8.0%	$57.96	$73.13	$90.75	$111.10	$134.50
9.0%	$46.36	$58.99	$73.62	$90.51	$109.90
10.0%	$37.85	$48.62	$61.08	$75.43	$91.90
11.0%	$31.34	$40.69	$51.49	$63.92	$78.17

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $9.33

Book Value / share($)Yahoo: $26.80

Results

Graham Number$75.01

Current Price$287.09

Margin of Safety-73.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.33%

Terminal growth rate(%)

Computed WACC: 10.33%

Cost of equity (Re)11.21%(Rf 4.30% + β 1.26 × 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)92.16%

Debt weight (D/V)7.84%

Results

Current Price$287.09

Implied Near-term FCF Growth30.6%

Historical Revenue Growth5.5%

Historical Earnings Growth-0.3%

Base FCF (TTM)$281.08M

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: $3.16

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$65.10

Current Price$287.09

Upside / Downside-77.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $809.06M

Target EV/EBITDA multipleCurrent: 20.7×

Net Debt($B)Default: $1.04B

Results

Implied Equity Value / share$285.93

Current Price$287.09

Upside / Downside-0.4%

Implied EV$16.77B

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

Mult \ Net Debt	$1.04B	$1.04B	$1.04B	$1.04B	$1.04B
16.7x	$227.12	$227.12	$227.12	$227.12	$227.12
18.7x	$256.53	$256.53	$256.53	$256.53	$256.53
20.7x	$285.93	$285.93	$285.93	$285.93	$285.93
22.7x	$315.34	$315.34	$315.34	$315.34	$315.34
24.7x	$344.75	$344.75	$344.75	$344.75	$344.75

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