LEN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($110.61)
DCF	$1006.42	+809.9%
Graham Number	$124.27	+12.4%
Reverse DCF	—	implied g: -20.0%
DDM	$41.20	-62.8%
EV/EBITDA	$127.45	+15.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $12.16B

Near-term growth (yrs 1–5)(%)Rev: -5.8% / EPS: -52.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.07%

Computed WACC: 10.07%

Cost of equity (Re)12.34%(Rf 4.30% + β 1.46 × 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)81.65%

Debt weight (D/V)18.35%

Results

Intrinsic Value / share$865.02

Current Price$110.61

Upside / Downside+682.0%

Net Debt (used)-$3.74B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$1014.92	$1216.65	$1451.35	$1722.98	$2035.83
8.0%	$837.41	$999.78	$1188.40	$1406.40	$1657.20
9.0%	$714.41	$849.61	$1006.42	$1187.44	$1395.43
10.0%	$624.11	$739.45	$873.03	$1027.02	$1203.76
11.0%	$554.98	$655.19	$771.07	$904.50	$1057.45

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.72

Book Value / share($)Yahoo: $88.91

Results

Graham Number$124.27

Current Price$110.61

Margin of Safety+12.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.07%

Terminal growth rate(%)

Computed WACC: 10.07%

Cost of equity (Re)12.34%(Rf 4.30% + β 1.46 × 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)81.65%

Debt weight (D/V)18.35%

Results

Current Price$110.61

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth-5.8%

Historical Earnings Growth-52.6%

Base FCF (TTM)$12.16B

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: $2.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$41.20

Current Price$110.61

Upside / Downside-62.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.99B

Target EV/EBITDA multipleCurrent: 7.9×

Net Debt($B)Default: -$3.74B

Results

Implied Equity Value / share$127.45

Current Price$110.61

Upside / Downside+15.2%

Implied EV$23.76B

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

Mult \ Net Debt	-$5.74B	-$4.74B	-$3.74B	-$2.74B	-$1.74B
3.9x	$81.25	$76.62	$71.98	$67.35	$62.71
5.9x	$108.99	$104.35	$99.72	$95.08	$90.45
7.9x	$136.72	$132.09	$127.45	$122.82	$118.19
9.9x	$164.46	$159.83	$155.19	$150.56	$145.92
11.9x	$192.20	$187.56	$182.93	$178.29	$173.66

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