MKTX — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($192.05)
DCF	$1038.31	+440.6%
Graham Number	$69.17	-64.0%
Reverse DCF	—	implied g: 13.6%
DDM	$64.27	-66.5%
EV/EBITDA	$192.41	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $224.41M

Near-term growth (yrs 1–5)(%)Rev: 3.5% / EPS: 45.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.21%

Computed WACC: 9.21%

Cost of equity (Re)9.58%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)96.16%

Debt weight (D/V)3.84%

Results

Intrinsic Value / share$998.84

Current Price$192.05

Upside / Downside+420.1%

Net Debt (used)-$335.57M

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

WACC \ Near-term	37.3%	41.3%	45.3%	49.3%	53.3%
7.0%	$1240.97	$1427.70	$1636.59	$1869.56	$2128.66
8.0%	$973.79	$1119.34	$1282.12	$1463.62	$1665.42
9.0%	$791.35	$908.79	$1040.11	$1186.49	$1349.21
10.0%	$659.56	$756.73	$865.34	$986.38	$1120.89
11.0%	$560.42	$642.34	$733.88	$835.87	$949.19

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.64

Book Value / share($)Yahoo: $32.02

Results

Graham Number$69.17

Current Price$192.05

Margin of Safety-64.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.21%

Terminal growth rate(%)

Computed WACC: 9.21%

Cost of equity (Re)9.58%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)96.16%

Debt weight (D/V)3.84%

Results

Current Price$192.05

Implied Near-term FCF Growth14.2%

Historical Revenue Growth3.5%

Historical Earnings Growth45.3%

Base FCF (TTM)$224.41M

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: $3.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$64.27

Current Price$192.05

Upside / Downside-66.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $423.59M

Target EV/EBITDA multipleCurrent: 15.4×

Net Debt($B)Default: -$335.57M

Results

Implied Equity Value / share$192.41

Current Price$192.05

Upside / Downside+0.2%

Implied EV$6.50B

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

Mult \ Net Debt	-$2.34B	-$1.34B	-$335.57M	$664.43M	$1.66B
11.4x	$201.01	$172.88	$144.75	$116.61	$88.48
13.4x	$224.84	$196.71	$168.58	$140.45	$112.32
15.4x	$248.67	$220.54	$192.41	$164.28	$136.15
17.4x	$272.50	$244.37	$216.24	$188.11	$159.98
19.4x	$296.33	$268.20	$240.07	$211.94	$183.81

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