MERC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($1.79)
DCF	$-32.44	-1912.2%
Graham Number	—	—
Reverse DCF	—	—
DDM	$6.18	+245.3%
EV/EBITDA	—	—

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$41.80M

Near-term growth (yrs 1–5)(%)Rev: -8.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.04%

Computed WACC: 6.04%

Cost of equity (Re)8.00%(Rf 4.30% + β 0.67 × ERP 5.50%)

Cost of debt (Rd)7.46%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)6.87%

Debt weight (D/V)93.13%

Results

Intrinsic Value / share$-41.71

Current Price$1.79

Upside / Downside-2430.3%

Net Debt (used)$1.44B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-32.53	$-34.77	$-37.37	$-40.38	$-43.84
8.0%	$-30.57	$-32.36	$-34.45	$-36.87	$-39.65
9.0%	$-29.20	$-30.70	$-32.44	$-34.44	$-36.75
10.0%	$-28.20	$-29.48	$-30.96	$-32.67	$-34.62
11.0%	$-27.44	$-28.55	$-29.83	$-31.31	$-33.00

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-7.44

Book Value / share($)Yahoo: $1.02

Results

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

Graham Number—

Current Price$1.79

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.04%

Terminal growth rate(%)

Computed WACC: 6.04%

Cost of equity (Re)8.00%(Rf 4.30% + β 0.67 × ERP 5.50%)

Cost of debt (Rd)7.46%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)6.87%

Debt weight (D/V)93.13%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$1.79

Implied Near-term FCF Growth—

Historical Revenue Growth-8.0%

Historical Earnings Growth—

Base FCF (TTM)-$41.80M

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: $0.30

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$6.18

Current Price$1.79

Upside / Downside+245.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: -$19.91M

Target EV/EBITDA multipleCurrent: -78.3×

Net Debt($B)Default: $1.44B

Results

Implied Equity Value / share$1.79

Current Price$1.79

Upside / Downside-0.2%

Implied EV$1.56B

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