LW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($46.78)
DCF	$49.88	+6.6%
Graham Number	$28.01	-40.1%
Reverse DCF	—	implied g: 4.3%
DDM	$31.31	-33.1%
EV/EBITDA	$46.78	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $614.59M

Near-term growth (yrs 1–5)(%)Rev: 1.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.15%

Computed WACC: 4.15%

Cost of equity (Re)6.65%(Rf 4.30% + β 0.43 × 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)62.30%

Debt weight (D/V)37.70%

Results

Intrinsic Value / share$281.17

Current Price$46.78

Upside / Downside+501.1%

Net Debt (used)$3.86B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$50.55	$66.40	$84.83	$106.17	$130.74
8.0%	$36.61	$49.36	$64.18	$81.30	$101.00
9.0%	$26.95	$37.57	$49.88	$64.10	$80.44
10.0%	$19.85	$28.91	$39.41	$51.50	$65.38
11.0%	$14.42	$22.29	$31.40	$41.88	$53.89

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.76

Book Value / share($)Yahoo: $12.63

Results

Graham Number$28.01

Current Price$46.78

Margin of Safety-40.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.15%

Terminal growth rate(%)

Computed WACC: 4.15%

Cost of equity (Re)6.65%(Rf 4.30% + β 0.43 × 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)62.30%

Debt weight (D/V)37.70%

Results

Current Price$46.78

Implied Near-term FCF Growth-14.8%

Historical Revenue Growth1.1%

Historical Earnings Growth—

Base FCF (TTM)$614.59M

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: $1.52

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$31.31

Current Price$46.78

Upside / Downside-33.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.23B

Target EV/EBITDA multipleCurrent: 8.4×

Net Debt($B)Default: $3.86B

Results

Implied Equity Value / share$46.78

Current Price$46.78

Upside / Downside+0.0%

Implied EV$10.36B

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

Mult \ Net Debt	$1.86B	$2.86B	$3.86B	$4.86B	$5.86B
4.4x	$25.73	$18.53	$11.33	$4.12	$-3.08
6.4x	$43.45	$36.25	$29.05	$21.85	$14.65
8.4x	$61.18	$53.98	$46.78	$39.58	$32.38
10.4x	$78.91	$71.71	$64.51	$57.31	$50.11
12.4x	$96.64	$89.44	$82.24	$75.04	$67.83

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