LZB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($35.65)
DCF	$77.17	+116.5%
Graham Number	$33.86	-5.0%
Reverse DCF	—	implied g: -6.7%
DDM	$19.98	-43.9%
EV/EBITDA	$35.96	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $194.68M

Near-term growth (yrs 1–5)(%)Rev: 3.8% / EPS: -23.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.18%

Computed WACC: 8.18%

Cost of equity (Re)11.35%(Rf 4.30% + β 1.28 × 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)72.12%

Debt weight (D/V)27.88%

Results

Intrinsic Value / share$89.37

Current Price$35.65

Upside / Downside+150.7%

Net Debt (used)$259.57M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$77.89	$94.93	$114.74	$137.68	$164.10
8.0%	$62.90	$76.61	$92.54	$110.95	$132.13
9.0%	$52.52	$63.93	$77.17	$92.46	$110.02
10.0%	$44.89	$54.63	$65.91	$78.91	$93.84
11.0%	$39.05	$47.52	$57.30	$68.57	$81.48

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.00

Book Value / share($)Yahoo: $25.48

Results

Graham Number$33.86

Current Price$35.65

Margin of Safety-5.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.18%

Terminal growth rate(%)

Computed WACC: 8.18%

Cost of equity (Re)11.35%(Rf 4.30% + β 1.28 × 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)72.12%

Debt weight (D/V)27.88%

Results

Current Price$35.65

Implied Near-term FCF Growth-8.6%

Historical Revenue Growth3.8%

Historical Earnings Growth-23.5%

Base FCF (TTM)$194.68M

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: $0.97

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$19.98

Current Price$35.65

Upside / Downside-43.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $186.86M

Target EV/EBITDA multipleCurrent: 9.3×

Net Debt($B)Default: $259.57M

Results

Implied Equity Value / share$35.96

Current Price$35.65

Upside / Downside+0.9%

Implied EV$1.73B

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

Mult \ Net Debt	-$1.74B	-$740.43M	$259.57M	$1.26B	$2.26B
5.3x	$66.56	$42.13	$17.69	$-6.74	$-31.18
7.3x	$75.70	$51.26	$26.82	$2.39	$-22.05
9.3x	$84.83	$60.39	$35.96	$11.52	$-12.91
11.3x	$93.96	$69.52	$45.09	$20.65	$-3.78
13.3x	$103.09	$78.66	$54.22	$29.79	$5.35

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