MKC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($69.90)
DCF	$26.15	-62.6%
Graham Number	$37.54	-46.3%
Reverse DCF	—	implied g: 18.7%
DDM	$39.55	-43.4%
EV/EBITDA	$74.12	+6.0%

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)81.63%

Debt weight (D/V)18.37%

Results

Intrinsic Value / share$47.71

Current Price$69.90

Upside / Downside-31.7%

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%	$26.86	$35.50	$45.54	$57.14	$70.48
8.0%	$19.08	$26.02	$34.08	$43.37	$54.05
9.0%	$13.69	$19.47	$26.15	$33.86	$42.70
10.0%	$9.75	$14.66	$20.35	$26.89	$34.40
11.0%	$6.73	$10.99	$15.92	$21.58	$28.06

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$69.90

Margin of Safety-46.3%

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)81.63%

Debt weight (D/V)18.37%

Results

Current Price$69.90

Implied Near-term FCF Growth11.2%

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$69.90

Upside / Downside-43.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.31B

Target EV/EBITDA multipleCurrent: 17.6×

Net Debt($B)Default: $4.13B

Results

Implied Equity Value / share$74.12

Current Price$69.90

Upside / Downside+6.0%

Implied EV$22.92B

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

Mult \ Net Debt	$2.13B	$3.13B	$4.13B	$5.13B	$6.13B
13.6x	$61.41	$57.46	$53.52	$49.58	$45.63
15.6x	$71.70	$67.76	$63.82	$59.87	$55.93
17.6x	$82.00	$78.06	$74.12	$70.17	$66.23
19.6x	$92.30	$88.36	$84.42	$80.47	$76.53
21.6x	$102.60	$98.66	$94.71	$90.77	$86.83

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