MKC-V — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($69.53)
DCF	$446.67	+542.4%
Graham Number	$37.54	-46.0%
Reverse DCF	—	implied g: -6.1%
DDM	$39.55	-43.1%
EV/EBITDA	$1259.17	+1711.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $564.52M

Near-term growth (yrs 1–5)(%)Rev: 2.9% / EPS: 6.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.85%

Computed WACC: 6.85%

Cost of equity (Re)7.46%(Rf 4.30% + β 0.57 × ERP 5.50%)

Cost of debt (Rd)5.25%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.56%

Debt weight (D/V)18.44%

Results

Intrinsic Value / share$814.93

Current Price$69.53

Upside / Downside+1072.1%

Net Debt (used)$4.13B

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

WACC \ Near-term	-1.6%	2.4%	6.4%	10.4%	14.4%
7.0%	$458.68	$606.31	$777.78	$975.92	$1203.80
8.0%	$325.86	$444.47	$582.03	$740.80	$923.18
9.0%	$233.89	$332.49	$446.67	$578.29	$729.32
10.0%	$166.45	$250.42	$347.54	$459.34	$587.49
11.0%	$114.87	$187.71	$271.83	$368.56	$479.31

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.93

Book Value / share($)Yahoo: $21.37

Results

Graham Number$37.54

Current Price$69.53

Margin of Safety-46.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.85%

Terminal growth rate(%)

Computed WACC: 6.85%

Cost of equity (Re)7.46%(Rf 4.30% + β 0.57 × ERP 5.50%)

Cost of debt (Rd)5.25%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.56%

Debt weight (D/V)18.44%

Results

Current Price$69.53

Implied Near-term FCF Growth-11.6%

Historical Revenue Growth2.9%

Historical Earnings Growth6.4%

Base FCF (TTM)$564.52M

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: $1.92

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$39.55

Current Price$69.53

Upside / Downside-43.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.31B

Target EV/EBITDA multipleCurrent: 17.5×

Net Debt($B)Default: $4.13B

Results

Implied Equity Value / share$1259.17

Current Price$69.53

Upside / Downside+1711.0%

Implied EV$22.82B

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

Mult \ Net Debt	$2.13B	$3.13B	$4.13B	$5.13B	$6.13B
13.5x	$1042.09	$974.73	$907.38	$840.03	$772.68
15.5x	$1217.98	$1150.63	$1083.28	$1015.93	$948.58
17.5x	$1393.87	$1326.52	$1259.17	$1191.82	$1124.47
19.5x	$1569.76	$1502.41	$1435.06	$1367.71	$1300.36
21.5x	$1745.66	$1678.30	$1610.95	$1543.60	$1476.25

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