LNC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($34.30)
DCF	$458.26	+1236.0%
Graham Number	$82.75	+141.2%
Reverse DCF	—	implied g: -20.0%
DDM	$37.08	+8.1%
EV/EBITDA	$39.49	+15.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.80B

Near-term growth (yrs 1–5)(%)Rev: -3.1% / EPS: -60.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.94%

Computed WACC: 6.94%

Cost of equity (Re)11.31%(Rf 4.30% + β 1.27 × ERP 5.50%)

Cost of debt (Rd)3.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)48.04%

Debt weight (D/V)51.96%

Results

Intrinsic Value / share$579.57

Current Price$34.30

Upside / Downside+1589.7%

Net Debt (used)-$38.01B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$460.48	$513.17	$574.46	$645.40	$727.11
8.0%	$414.13	$456.53	$505.79	$562.72	$628.22
9.0%	$382.00	$417.31	$458.26	$505.54	$559.86
10.0%	$358.42	$388.54	$423.43	$463.64	$509.80
11.0%	$340.36	$366.53	$396.80	$431.64	$471.59

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.83

Book Value / share($)Yahoo: $52.20

Results

Graham Number$82.75

Current Price$34.30

Margin of Safety+141.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.94%

Terminal growth rate(%)

Computed WACC: 6.94%

Cost of equity (Re)11.31%(Rf 4.30% + β 1.27 × ERP 5.50%)

Cost of debt (Rd)3.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)48.04%

Debt weight (D/V)51.96%

Results

Current Price$34.30

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth-3.1%

Historical Earnings Growth-60.7%

Base FCF (TTM)$2.80B

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: $1.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$37.08

Current Price$34.30

Upside / Downside+8.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.21B

Target EV/EBITDA multipleCurrent: -25.2×

Net Debt($B)Default: -$38.01B

Results

Implied Equity Value / share$39.49

Current Price$34.30

Upside / Downside+15.1%

Implied EV-$30.50B

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

Mult \ Net Debt	-$58.01B	-$48.01B	-$38.01B	-$28.01B	-$18.01B
-29.2x	$119.24	$66.63	$14.03	$-38.58	$-91.19
-27.2x	$131.97	$79.36	$26.76	$-25.85	$-78.46
-25.2x	$144.70	$92.09	$39.49	$-13.12	$-65.73
-23.2x	$157.43	$104.82	$52.22	$-0.39	$-53.00
-21.2x	$170.16	$117.56	$64.95	$12.34	$-40.26

← Overview Financial Statements ← Companies