MDT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($98.10)
DCF	$53.83	-45.1%
Graham Number	$55.45	-43.5%
Reverse DCF	—	implied g: 17.3%
DDM	$58.50	-40.4%
EV/EBITDA	$98.26	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.07B

Near-term growth (yrs 1–5)(%)Rev: 8.7% / EPS: -11.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.80%

Computed WACC: 6.80%

Cost of equity (Re)8.31%(Rf 4.30% + β 0.73 × 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)81.77%

Debt weight (D/V)18.23%

Results

Intrinsic Value / share$90.91

Current Price$98.10

Upside / Downside-7.3%

Net Debt (used)$19.69B

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

WACC \ Near-term	0.7%	4.7%	8.7%	12.7%	16.7%
7.0%	$55.74	$69.77	$86.02	$104.74	$126.23
8.0%	$42.67	$53.91	$66.91	$81.88	$99.04
9.0%	$33.63	$42.95	$53.72	$66.10	$80.27
10.0%	$27.01	$34.93	$44.06	$54.56	$66.56
11.0%	$21.96	$28.81	$36.70	$45.76	$56.11

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.58

Book Value / share($)Yahoo: $38.17

Results

Graham Number$55.45

Current Price$98.10

Margin of Safety-43.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.80%

Terminal growth rate(%)

Computed WACC: 6.80%

Cost of equity (Re)8.31%(Rf 4.30% + β 0.73 × 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)81.77%

Debt weight (D/V)18.23%

Results

Current Price$98.10

Implied Near-term FCF Growth9.7%

Historical Revenue Growth8.7%

Historical Earnings Growth-11.8%

Base FCF (TTM)$4.07B

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: $2.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$58.50

Current Price$98.10

Upside / Downside-40.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $9.44B

Target EV/EBITDA multipleCurrent: 15.4×

Net Debt($B)Default: $19.69B

Results

Implied Equity Value / share$98.26

Current Price$98.10

Upside / Downside+0.2%

Implied EV$145.85B

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

Mult \ Net Debt	$9.69B	$14.69B	$19.69B	$24.69B	$29.69B
11.4x	$76.64	$72.75	$68.85	$64.96	$61.06
13.4x	$91.35	$87.45	$83.56	$79.66	$75.77
15.4x	$106.05	$102.16	$98.26	$94.37	$90.48
17.4x	$120.76	$116.86	$112.97	$109.08	$105.18
19.4x	$135.46	$131.57	$127.67	$123.78	$119.89

← Overview Financial Statements ← Companies