LIN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($508.08)
DCF	$140.40	-72.4%
Graham Number	$164.77	-67.6%
Reverse DCF	—	implied g: 24.6%
DDM	$131.84	-74.1%
EV/EBITDA	$511.30	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.79B

Near-term growth (yrs 1–5)(%)Rev: 5.8% / EPS: -9.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.25%

Computed WACC: 8.25%

Cost of equity (Re)8.96%(Rf 4.30% + β 0.85 × ERP 5.50%)

Cost of debt (Rd)2.88%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)89.35%

Debt weight (D/V)10.65%

Results

Intrinsic Value / share$165.70

Current Price$508.08

Upside / Downside-67.4%

Net Debt (used)$23.01B

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

WACC \ Near-term	-2.2%	1.8%	5.8%	9.8%	13.8%
7.0%	$142.90	$181.64	$226.67	$278.74	$338.66
8.0%	$108.37	$139.52	$175.67	$217.42	$265.41
9.0%	$84.46	$110.37	$140.40	$175.03	$214.80
10.0%	$66.91	$88.99	$114.55	$143.99	$177.75
11.0%	$53.49	$72.66	$94.81	$120.29	$149.49

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $14.63

Book Value / share($)Yahoo: $82.48

Results

Graham Number$164.77

Current Price$508.08

Margin of Safety-67.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.25%

Terminal growth rate(%)

Computed WACC: 8.25%

Cost of equity (Re)8.96%(Rf 4.30% + β 0.85 × ERP 5.50%)

Cost of debt (Rd)2.88%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)89.35%

Debt weight (D/V)10.65%

Results

Current Price$508.08

Implied Near-term FCF Growth22.1%

Historical Revenue Growth5.8%

Historical Earnings Growth-9.4%

Base FCF (TTM)$4.79B

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: $6.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$131.84

Current Price$508.08

Upside / Downside-74.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $13.34B

Target EV/EBITDA multipleCurrent: 19.5×

Net Debt($B)Default: $23.01B

Results

Implied Equity Value / share$511.30

Current Price$508.08

Upside / Downside+0.6%

Implied EV$259.95B

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

Mult \ Net Debt	$11.01B	$17.01B	$23.01B	$29.01B	$35.01B
15.5x	$422.02	$409.08	$396.13	$383.18	$370.23
17.5x	$479.61	$466.66	$453.72	$440.77	$427.82
19.5x	$537.20	$524.25	$511.30	$498.36	$485.41
21.5x	$594.79	$581.84	$568.89	$555.94	$543.00
23.5x	$652.38	$639.43	$626.48	$613.53	$600.58

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