MCO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($477.59)
DCF	$3459.26	+624.3%
Graham Number	$83.77	-82.5%
Reverse DCF	—	implied g: 20.8%
DDM	$84.87	-82.2%
EV/EBITDA	$478.44	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.06B

Near-term growth (yrs 1–5)(%)Rev: 13.0% / EPS: 57.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.23%

Computed WACC: 11.23%

Cost of equity (Re)12.21%(Rf 4.30% + β 1.44 × 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)91.93%

Debt weight (D/V)8.07%

Results

Intrinsic Value / share$2303.98

Current Price$477.59

Upside / Downside+382.4%

Net Debt (used)$4.99B

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

WACC \ Near-term	49.6%	53.6%	57.6%	61.6%	65.6%
7.0%	$4278.82	$4879.23	$5545.12	$6281.70	$7094.48
8.0%	$3322.46	$3788.15	$4304.54	$4875.66	$5505.77
9.0%	$2670.77	$3044.70	$3459.26	$3917.69	$4423.39
10.0%	$2201.12	$2508.96	$2850.18	$3227.45	$3643.55
11.0%	$1848.67	$2106.94	$2393.16	$2709.56	$3058.47

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $13.66

Book Value / share($)Yahoo: $22.83

Results

Graham Number$83.77

Current Price$477.59

Margin of Safety-82.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.23%

Terminal growth rate(%)

Computed WACC: 11.23%

Cost of equity (Re)12.21%(Rf 4.30% + β 1.44 × 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)91.93%

Debt weight (D/V)8.07%

Results

Current Price$477.59

Implied Near-term FCF Growth27.2%

Historical Revenue Growth13.0%

Historical Earnings Growth57.6%

Base FCF (TTM)$2.06B

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: $4.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$84.87

Current Price$477.59

Upside / Downside-82.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.74B

Target EV/EBITDA multipleCurrent: 24.0×

Net Debt($B)Default: $4.99B

Results

Implied Equity Value / share$478.44

Current Price$477.59

Upside / Downside+0.2%

Implied EV$89.82B

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

Mult \ Net Debt	$2.99B	$3.99B	$4.99B	$5.99B	$6.99B
20.0x	$405.41	$399.77	$394.13	$388.49	$382.85
22.0x	$447.57	$441.93	$436.29	$430.65	$425.01
24.0x	$489.72	$484.08	$478.44	$472.80	$467.16
26.0x	$531.88	$526.24	$520.60	$514.96	$509.32
28.0x	$574.03	$568.39	$562.75	$557.11	$551.47

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