LOW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($257.17)
DCF	$161.29	-37.3%
Graham Number	—	—
Reverse DCF	—	implied g: 16.8%
DDM	$98.88	-61.6%
EV/EBITDA	$257.20	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $5.40B

Near-term growth (yrs 1–5)(%)Rev: 10.9% / EPS: -10.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.21%

Computed WACC: 7.21%

Cost of equity (Re)9.44%(Rf 4.30% + β 0.94 × 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)76.35%

Debt weight (D/V)23.65%

Results

Intrinsic Value / share$259.38

Current Price$257.17

Upside / Downside+0.9%

Net Debt (used)$43.33B

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

WACC \ Near-term	2.9%	6.9%	10.9%	14.9%	18.9%
7.0%	$171.66	$220.06	$275.98	$340.29	$413.91
8.0%	$125.03	$163.71	$208.35	$259.62	$318.27
9.0%	$92.83	$124.82	$161.68	$203.99	$252.33
10.0%	$69.29	$96.39	$127.60	$163.37	$204.21
11.0%	$51.34	$74.73	$101.64	$132.46	$167.60

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $12.09

Book Value / share($)Yahoo: $-17.68

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$257.17

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.21%

Terminal growth rate(%)

Computed WACC: 7.21%

Cost of equity (Re)9.44%(Rf 4.30% + β 0.94 × 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)76.35%

Debt weight (D/V)23.65%

Results

Current Price$257.17

Implied Near-term FCF Growth10.8%

Historical Revenue Growth10.9%

Historical Earnings Growth-10.8%

Base FCF (TTM)$5.40B

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: $4.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$98.88

Current Price$257.17

Upside / Downside-61.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $12.35B

Target EV/EBITDA multipleCurrent: 15.2×

Net Debt($B)Default: $43.33B

Results

Implied Equity Value / share$257.20

Current Price$257.17

Upside / Downside+0.0%

Implied EV$187.60B

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

Mult \ Net Debt	$21.33B	$32.33B	$43.33B	$54.33B	$65.33B
11.2x	$208.37	$188.76	$169.15	$149.54	$129.94
13.2x	$252.39	$232.79	$213.18	$193.57	$173.96
15.2x	$296.42	$276.81	$257.20	$237.59	$217.98
17.2x	$340.44	$320.83	$301.22	$281.61	$262.00
19.2x	$384.46	$364.85	$345.24	$325.63	$306.02

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