MCK — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($990.95)
DCF	$8297.59	+737.3%
Graham Number	—	—
Reverse DCF	—	implied g: 1.0%
DDM	$67.57	-93.2%
EV/EBITDA	$1000.73	+1.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $9.16B

Near-term growth (yrs 1–5)(%)Rev: 11.4% / EPS: 38.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.83%

Computed WACC: 5.83%

Cost of equity (Re)6.25%(Rf 4.30% + β 0.35 × 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)93.33%

Debt weight (D/V)6.67%

Results

Intrinsic Value / share$18470.37

Current Price$990.95

Upside / Downside+1763.9%

Net Debt (used)$5.78B

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

WACC \ Near-term	30.0%	34.0%	38.0%	42.0%	46.0%
7.0%	$9696.96	$11253.12	$13004.07	$14967.62	$17162.68
8.0%	$7622.03	$8839.50	$10208.86	$11743.99	$13459.61
9.0%	$6202.92	$7188.95	$8297.59	$9540.03	$10928.11
10.0%	$5176.06	$5994.81	$6915.03	$7945.94	$9097.32
11.0%	$4402.04	$5094.86	$5873.23	$6744.92	$7718.15

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $34.68

Book Value / share($)Yahoo: $-10.55

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$990.95

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.83%

Terminal growth rate(%)

Computed WACC: 5.83%

Cost of equity (Re)6.25%(Rf 4.30% + β 0.35 × 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)93.33%

Debt weight (D/V)6.67%

Results

Current Price$990.95

Implied Near-term FCF Growth-8.8%

Historical Revenue Growth11.4%

Historical Earnings Growth38.0%

Base FCF (TTM)$9.16B

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: $3.28

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.57

Current Price$990.95

Upside / Downside-93.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.93B

Target EV/EBITDA multipleCurrent: 21.7×

Net Debt($B)Default: $5.78B

Results

Implied Equity Value / share$1000.73

Current Price$990.95

Upside / Downside+1.0%

Implied EV$128.35B

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

Mult \ Net Debt	$3.78B	$4.78B	$5.78B	$6.78B	$7.78B
17.7x	$823.47	$815.31	$807.14	$798.98	$790.82
19.7x	$920.27	$912.10	$903.94	$895.77	$887.61
21.7x	$1017.06	$1008.90	$1000.73	$992.57	$984.40
23.7x	$1113.85	$1105.69	$1097.53	$1089.36	$1081.20
25.7x	$1210.65	$1202.48	$1194.32	$1186.15	$1177.99

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