LVS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($56.36)
DCF	$187.39	+232.5%
Graham Number	$11.16	-80.2%
Reverse DCF	—	implied g: 11.3%
DDM	$21.63	-61.6%
EV/EBITDA	$56.87	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.97B

Near-term growth (yrs 1–5)(%)Rev: 26.0% / EPS: 29.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.85%

Computed WACC: 7.85%

Cost of equity (Re)9.18%(Rf 4.30% + β 0.89 × ERP 5.50%)

Cost of debt (Rd)5.91%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.38%

Debt weight (D/V)29.62%

Results

Intrinsic Value / share$240.59

Current Price$56.36

Upside / Downside+326.9%

Net Debt (used)$12.19B

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

WACC \ Near-term	21.3%	25.3%	29.3%	33.3%	37.3%
7.0%	$214.05	$253.55	$298.35	$348.94	$405.88
8.0%	$166.01	$197.08	$232.29	$272.04	$316.77
9.0%	$133.07	$158.37	$187.03	$219.36	$255.72
10.0%	$109.18	$130.30	$154.20	$181.17	$211.47
11.0%	$91.12	$109.09	$129.41	$152.31	$178.05

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.35

Book Value / share($)Yahoo: $2.36

Results

Graham Number$11.16

Current Price$56.36

Margin of Safety-80.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.85%

Terminal growth rate(%)

Computed WACC: 7.85%

Cost of equity (Re)9.18%(Rf 4.30% + β 0.89 × ERP 5.50%)

Cost of debt (Rd)5.91%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.38%

Debt weight (D/V)29.62%

Results

Current Price$56.36

Implied Near-term FCF Growth7.8%

Historical Revenue Growth26.0%

Historical Earnings Growth29.3%

Base FCF (TTM)$1.97B

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: $1.05

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$21.63

Current Price$56.36

Upside / Downside-61.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.53B

Target EV/EBITDA multipleCurrent: 11.1×

Net Debt($B)Default: $12.19B

Results

Implied Equity Value / share$56.87

Current Price$56.36

Upside / Downside+0.9%

Implied EV$50.40B

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

Mult \ Net Debt	$6.19B	$9.19B	$12.19B	$15.19B	$18.19B
7.1x	$38.81	$34.35	$29.88	$25.42	$20.95
9.1x	$52.30	$47.84	$43.37	$38.91	$34.44
11.1x	$65.80	$61.33	$56.87	$52.40	$47.94
13.1x	$79.29	$74.82	$70.36	$65.89	$61.43
15.1x	$92.78	$88.32	$83.85	$79.39	$74.92

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