META — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($639.29)
DCF	$551.89	-13.7%
Graham Number	$212.90	-66.7%
Reverse DCF	—	implied g: 26.4%
DDM	$43.26	-93.2%
EV/EBITDA	$739.36	+15.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $23.43B

Near-term growth (yrs 1–5)(%)Rev: 23.8% / EPS: 10.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.86%

Computed WACC: 10.86%

Cost of equity (Re)11.36%(Rf 4.30% + β 1.28 × ERP 5.50%)

Cost of debt (Rd)1.78%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.00%

Debt weight (D/V)5.00%

Results

Intrinsic Value / share$408.63

Current Price$639.29

Upside / Downside-36.1%

Net Debt (used)$3.49B

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

WACC \ Near-term	15.8%	19.8%	23.8%	27.8%	31.8%
7.0%	$611.09	$719.65	$843.37	$983.82	$1142.64
8.0%	$487.17	$572.90	$670.53	$781.30	$906.48
9.0%	$402.08	$472.15	$551.89	$642.31	$744.45
10.0%	$340.23	$398.94	$465.71	$541.38	$626.80
11.0%	$293.39	$343.51	$400.48	$464.99	$537.79

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $23.46

Book Value / share($)Yahoo: $85.87

Results

Graham Number$212.90

Current Price$639.29

Margin of Safety-66.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.86%

Terminal growth rate(%)

Computed WACC: 10.86%

Cost of equity (Re)11.36%(Rf 4.30% + β 1.28 × ERP 5.50%)

Cost of debt (Rd)1.78%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.00%

Debt weight (D/V)5.00%

Results

Current Price$639.29

Implied Near-term FCF Growth32.2%

Historical Revenue Growth23.8%

Historical Earnings Growth10.7%

Base FCF (TTM)$23.43B

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: $2.10

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$43.26

Current Price$639.29

Upside / Downside-93.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $101.89B

Target EV/EBITDA multipleCurrent: 15.9×

Net Debt($B)Default: $3.49B

Results

Implied Equity Value / share$739.36

Current Price$639.29

Upside / Downside+15.7%

Implied EV$1.62T

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

Mult \ Net Debt	$1.49B	$2.49B	$3.49B	$4.49B	$5.49B
11.9x	$553.93	$553.47	$553.01	$552.55	$552.10
13.9x	$647.10	$646.64	$646.18	$645.73	$645.27
15.9x	$740.27	$739.81	$739.36	$738.90	$738.44
17.9x	$833.44	$832.99	$832.53	$832.07	$831.61
19.9x	$926.61	$926.16	$925.70	$925.24	$924.79

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