MKSI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($234.51)
DCF	$246.80	+5.2%
Graham Number	$63.07	-73.1%
Reverse DCF	—	implied g: 17.7%
DDM	$20.60	-91.2%
EV/EBITDA	$244.26	+4.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $535.12M

Near-term growth (yrs 1–5)(%)Rev: 10.6% / EPS: 18.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.43%

Computed WACC: 12.43%

Cost of equity (Re)14.86%(Rf 4.30% + β 1.92 × ERP 5.50%)

Cost of debt (Rd)4.91%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.89%

Debt weight (D/V)22.11%

Results

Intrinsic Value / share$129.26

Current Price$234.51

Upside / Downside-44.9%

Net Debt (used)$3.80B

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

WACC \ Near-term	10.4%	14.4%	18.4%	22.4%	26.4%
7.0%	$271.31	$331.74	$401.00	$480.03	$569.84
8.0%	$206.81	$254.74	$309.64	$372.22	$443.30
9.0%	$162.42	$201.78	$246.80	$298.10	$356.32
10.0%	$130.09	$163.20	$201.06	$244.16	$293.04
11.0%	$105.54	$133.93	$166.36	$203.26	$245.07

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.37

Book Value / share($)Yahoo: $40.46

Results

Graham Number$63.07

Current Price$234.51

Margin of Safety-73.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.43%

Terminal growth rate(%)

Computed WACC: 12.43%

Cost of equity (Re)14.86%(Rf 4.30% + β 1.92 × ERP 5.50%)

Cost of debt (Rd)4.91%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)77.89%

Debt weight (D/V)22.11%

Results

Current Price$234.51

Implied Near-term FCF Growth26.9%

Historical Revenue Growth10.6%

Historical Earnings Growth18.4%

Base FCF (TTM)$535.12M

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: $1.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$20.60

Current Price$234.51

Upside / Downside-91.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $897.00M

Target EV/EBITDA multipleCurrent: 22.6×

Net Debt($B)Default: $3.80B

Results

Implied Equity Value / share$244.26

Current Price$234.51

Upside / Downside+4.2%

Implied EV$20.23B

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

Mult \ Net Debt	$1.80B	$2.80B	$3.80B	$4.80B	$5.80B
18.6x	$220.65	$205.78	$190.91	$176.04	$161.17
20.6x	$247.32	$232.45	$217.58	$202.71	$187.84
22.6x	$274.00	$259.13	$244.26	$229.39	$214.52
24.6x	$300.68	$285.81	$270.94	$256.07	$241.20
26.6x	$327.36	$312.49	$297.62	$282.75	$267.87

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