LH — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($286.47)
DCF	$310.63	+8.4%
Graham Number	$157.10	-45.2%
Reverse DCF	—	implied g: 14.6%
DDM	$59.33	-79.3%
EV/EBITDA	$286.68	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $966.63M

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: 15.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.40%

Computed WACC: 8.40%

Cost of equity (Re)9.78%(Rf 4.30% + β 1.00 × ERP 5.50%)

Cost of debt (Rd)4.30%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)78.44%

Debt weight (D/V)21.56%

Results

Intrinsic Value / share$353.38

Current Price$286.47

Upside / Downside+23.4%

Net Debt (used)$5.99B

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

WACC \ Near-term	7.7%	11.7%	15.7%	19.7%	23.7%
7.0%	$335.58	$412.32	$500.52	$601.43	$716.40
8.0%	$256.56	$317.59	$387.67	$467.78	$558.97
9.0%	$202.13	$252.36	$309.98	$375.79	$450.66
10.0%	$162.42	$204.79	$253.35	$308.77	$371.77
11.0%	$132.22	$168.64	$210.33	$257.88	$311.88

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.46

Book Value / share($)Yahoo: $104.86

Results

Graham Number$157.10

Current Price$286.47

Margin of Safety-45.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.40%

Terminal growth rate(%)

Computed WACC: 8.40%

Cost of equity (Re)9.78%(Rf 4.30% + β 1.00 × ERP 5.50%)

Cost of debt (Rd)4.30%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)78.44%

Debt weight (D/V)21.56%

Results

Current Price$286.47

Implied Near-term FCF Growth12.7%

Historical Revenue Growth5.6%

Historical Earnings Growth15.7%

Base FCF (TTM)$966.63M

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: $2.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$59.33

Current Price$286.47

Upside / Downside-79.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.19B

Target EV/EBITDA multipleCurrent: 13.5×

Net Debt($B)Default: $5.99B

Results

Implied Equity Value / share$286.68

Current Price$286.47

Upside / Downside+0.1%

Implied EV$29.62B

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

Mult \ Net Debt	$3.99B	$4.99B	$5.99B	$6.99B	$7.99B
9.5x	$204.56	$192.43	$180.29	$168.15	$156.02
11.5x	$257.76	$245.62	$233.49	$221.35	$209.22
13.5x	$310.96	$298.82	$286.68	$274.55	$262.41
15.5x	$364.15	$352.02	$339.88	$327.74	$315.61
17.5x	$417.35	$405.21	$393.08	$380.94	$368.81

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