MKL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($2042.67)
DCF	$-80882.99	-4059.7%
Graham Number	$2371.25	+16.1%
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	$2115.20	+3.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$628.08M

Near-term growth (yrs 1–5)(%)Rev: 9.9% / EPS: 95.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.75%

Computed WACC: 7.75%

Cost of equity (Re)8.52%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)4.77%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.75%

Debt weight (D/V)16.25%

Results

Intrinsic Value / share$-108157.50

Current Price$2042.67

Upside / Downside-5394.9%

Net Debt (used)-$984.52M

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

WACC \ Near-term	87.4%	91.4%	95.4%	99.4%	103.4%
7.0%	$-107363.09	$-119288.19	$-132250.64	$-146316.72	$-161555.50
8.0%	$-82533.03	$-91693.62	$-101650.59	$-112454.84	$-124159.36
9.0%	$-65680.90	$-72965.49	$-80882.99	$-89473.81	$-98780.05
10.0%	$-53590.21	$-59529.10	$-65983.64	$-72986.72	$-80572.65
11.0%	$-44560.29	$-49494.34	$-54856.48	$-60674.04	$-66975.46

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $169.17

Book Value / share($)Yahoo: $1477.23

Results

Graham Number$2371.25

Current Price$2042.67

Margin of Safety+16.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.75%

Terminal growth rate(%)

Computed WACC: 7.75%

Cost of equity (Re)8.52%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)4.77%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.75%

Debt weight (D/V)16.25%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$2042.67

Implied Near-term FCF Growth—

Historical Revenue Growth9.9%

Historical Earnings Growth95.4%

Base FCF (TTM)-$628.08M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$2042.67

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.54B

Target EV/EBITDA multipleCurrent: 7.3×

Net Debt($B)Default: -$984.52M

Results

Implied Equity Value / share$2115.20

Current Price$2042.67

Upside / Downside+3.6%

Implied EV$25.69B

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

Mult \ Net Debt	-$2.98B	-$1.98B	-$984.52M	$15.48M	$1.02B
3.3x	$1150.02	$1070.72	$991.42	$912.12	$832.82
5.3x	$1711.91	$1632.61	$1553.31	$1474.01	$1394.71
7.3x	$2273.80	$2194.50	$2115.20	$2035.89	$1956.59
9.3x	$2835.68	$2756.38	$2677.08	$2597.78	$2518.48
11.3x	$3397.57	$3318.27	$3238.97	$3159.67	$3080.37

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