M — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($18.81)
DCF	$41.25	+119.3%
Graham Number	$24.95	+32.7%
Reverse DCF	—	implied g: -3.1%
DDM	$15.86	-15.7%
EV/EBITDA	$18.81	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $897.88M

Near-term growth (yrs 1–5)(%)Rev: 0.2% / EPS: -60.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.41%

Computed WACC: 8.41%

Cost of equity (Re)12.69%(Rf 4.30% + β 1.52 × ERP 5.50%)

Cost of debt (Rd)5.48%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)48.82%

Debt weight (D/V)51.18%

Results

Intrinsic Value / share$47.24

Current Price$18.81

Upside / Downside+151.1%

Net Debt (used)$4.80B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$41.76	$53.85	$67.92	$84.20	$102.95
8.0%	$31.12	$40.85	$52.16	$65.22	$80.26
9.0%	$23.74	$31.85	$41.25	$52.10	$64.57
10.0%	$18.33	$25.25	$33.25	$42.48	$53.08
11.0%	$14.19	$20.20	$27.14	$35.14	$44.31

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.70

Book Value / share($)Yahoo: $16.28

Results

Graham Number$24.95

Current Price$18.81

Margin of Safety+32.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.41%

Terminal growth rate(%)

Computed WACC: 8.41%

Cost of equity (Re)12.69%(Rf 4.30% + β 1.52 × ERP 5.50%)

Cost of debt (Rd)5.48%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)48.82%

Debt weight (D/V)51.18%

Results

Current Price$18.81

Implied Near-term FCF Growth-4.5%

Historical Revenue Growth0.2%

Historical Earnings Growth-60.0%

Base FCF (TTM)$897.88M

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: $0.77

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$15.86

Current Price$18.81

Upside / Downside-15.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.47B

Target EV/EBITDA multipleCurrent: 6.7×

Net Debt($B)Default: $4.80B

Results

Implied Equity Value / share$18.81

Current Price$18.81

Upside / Downside-0.0%

Implied EV$9.80B

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

Mult \ Net Debt	$2.80B	$3.80B	$4.80B	$5.80B	$6.80B
2.7x	$4.20	$0.44	$-3.32	$-7.08	$-10.84
4.7x	$15.27	$11.50	$7.74	$3.98	$0.22
6.7x	$26.33	$22.57	$18.81	$15.05	$11.29
8.7x	$37.40	$33.63	$29.87	$26.11	$22.35
10.7x	$48.46	$44.70	$40.94	$37.18	$33.42

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