MA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($517.21)
DCF	$960.81	+85.8%
Graham Number	$56.68	-89.0%
Reverse DCF	—	implied g: 13.4%
DDM	$71.69	-86.1%
EV/EBITDA	$521.07	+0.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $16.27B

Near-term growth (yrs 1–5)(%)Rev: 17.6% / EPS: 24.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.58%

Computed WACC: 8.58%

Cost of equity (Re)8.82%(Rf 4.30% + β 0.82 × ERP 5.50%)

Cost of debt (Rd)3.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.88%

Debt weight (D/V)4.12%

Results

Intrinsic Value / share$1039.83

Current Price$517.21

Upside / Downside+101.0%

Net Debt (used)$8.94B

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

WACC \ Near-term	16.2%	20.2%	24.2%	28.2%	32.2%
7.0%	$1066.46	$1256.65	$1473.33	$1719.20	$1997.14
8.0%	$848.33	$998.46	$1169.40	$1363.25	$1582.27
9.0%	$698.56	$821.23	$960.81	$1119.01	$1297.65
10.0%	$589.72	$692.47	$809.31	$941.65	$1091.02
11.0%	$507.29	$594.99	$694.65	$807.46	$934.71

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $16.50

Book Value / share($)Yahoo: $8.65

Results

Graham Number$56.68

Current Price$517.21

Margin of Safety-89.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.58%

Terminal growth rate(%)

Computed WACC: 8.58%

Cost of equity (Re)8.82%(Rf 4.30% + β 0.82 × ERP 5.50%)

Cost of debt (Rd)3.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.88%

Debt weight (D/V)4.12%

Results

Current Price$517.21

Implied Near-term FCF Growth12.2%

Historical Revenue Growth17.6%

Historical Earnings Growth24.2%

Base FCF (TTM)$16.27B

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: $3.48

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$71.69

Current Price$517.21

Upside / Downside-86.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $20.54B

Target EV/EBITDA multipleCurrent: 22.9×

Net Debt($B)Default: $8.94B

Results

Implied Equity Value / share$521.07

Current Price$517.21

Upside / Downside+0.7%

Implied EV$470.19B

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

Mult \ Net Debt	$4.94B	$6.94B	$8.94B	$10.94B	$12.94B
18.9x	$432.75	$430.49	$428.23	$425.97	$423.72
20.9x	$479.17	$476.91	$474.65	$472.39	$470.13
22.9x	$525.58	$523.32	$521.07	$518.81	$516.55
24.9x	$572.00	$569.74	$567.48	$565.22	$562.96
26.9x	$618.42	$616.16	$613.90	$611.64	$609.38

← Overview Financial Statements ← Companies