LUMN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($6.80)
DCF	$-118.54	-1843.2%
Graham Number	—	—
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	$6.80	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$5.90B

Near-term growth (yrs 1–5)(%)Rev: -8.7% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.69%

Computed WACC: 7.69%

Cost of equity (Re)12.75%(Rf 4.30% + β 1.54 × ERP 5.50%)

Cost of debt (Rd)7.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)27.04%

Debt weight (D/V)72.96%

Results

Intrinsic Value / share$-144.37

Current Price$6.80

Upside / Downside-2223.1%

Net Debt (used)$17.82B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-119.41	$-140.03	$-164.03	$-191.81	$-223.80
8.0%	$-101.25	$-117.86	$-137.15	$-159.44	$-185.08
9.0%	$-88.68	$-102.50	$-118.54	$-137.05	$-158.32
10.0%	$-79.44	$-91.24	$-104.90	$-120.64	$-138.72
11.0%	$-72.37	$-82.62	$-94.47	$-108.11	$-123.75

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-1.75

Book Value / share($)Yahoo: $-1.09

Results

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

Graham Number—

Current Price$6.80

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.69%

Terminal growth rate(%)

Computed WACC: 7.69%

Cost of equity (Re)12.75%(Rf 4.30% + β 1.54 × ERP 5.50%)

Cost of debt (Rd)7.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)27.04%

Debt weight (D/V)72.96%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$6.80

Implied Near-term FCF Growth—

Historical Revenue Growth-8.7%

Historical Earnings Growth—

Base FCF (TTM)-$5.90B

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$6.80

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.44B

Target EV/EBITDA multipleCurrent: 10.1×

Net Debt($B)Default: $17.82B

Results

Implied Equity Value / share$6.80

Current Price$6.80

Upside / Downside-0.0%

Implied EV$24.78B

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

Mult \ Net Debt	$9.82B	$13.82B	$17.82B	$21.82B	$25.82B
6.1x	$5.06	$1.16	$-2.75	$-6.65	$-10.56
8.1x	$9.84	$5.93	$2.03	$-1.88	$-5.78
10.1x	$14.61	$10.70	$6.80	$2.89	$-1.01
12.1x	$19.38	$15.48	$11.57	$7.67	$3.76
14.1x	$24.16	$20.25	$16.35	$12.44	$8.54

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