MLM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($665.35)
DCF	$-355.71	-153.5%
Graham Number	$245.47	-63.1%
Reverse DCF	—	—
DDM	$68.39	-89.7%
EV/EBITDA	$665.39	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$715.75M

Near-term growth (yrs 1–5)(%)Rev: 8.6% / EPS: -4.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.64%

Computed WACC: 9.64%

Cost of equity (Re)10.58%(Rf 4.30% + β 1.14 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.98%

Debt weight (D/V)13.02%

Results

Intrinsic Value / share$-331.53

Current Price$665.35

Upside / Downside-149.8%

Net Debt (used)$5.94B

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

WACC \ Near-term	0.6%	4.6%	8.6%	12.6%	16.6%
7.0%	$-363.15	$-415.42	$-475.98	$-545.79	$-625.89
8.0%	$-314.49	$-356.38	$-404.84	$-460.64	$-524.61
9.0%	$-280.85	$-315.58	$-355.71	$-401.86	$-454.71
10.0%	$-256.22	$-285.72	$-319.77	$-358.88	$-403.63
11.0%	$-237.41	$-262.94	$-292.36	$-326.13	$-364.72

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $16.10

Book Value / share($)Yahoo: $166.34

Results

Graham Number$245.47

Current Price$665.35

Margin of Safety-63.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.64%

Terminal growth rate(%)

Computed WACC: 9.64%

Cost of equity (Re)10.58%(Rf 4.30% + β 1.14 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.98%

Debt weight (D/V)13.02%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$665.35

Implied Near-term FCF Growth—

Historical Revenue Growth8.6%

Historical Earnings Growth-4.1%

Base FCF (TTM)-$715.75M

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: $3.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$68.39

Current Price$665.35

Upside / Downside-89.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.11B

Target EV/EBITDA multipleCurrent: 21.8×

Net Debt($B)Default: $5.94B

Results

Implied Equity Value / share$665.39

Current Price$665.35

Upside / Downside+0.0%

Implied EV$46.07B

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

Mult \ Net Debt	$3.94B	$4.94B	$5.94B	$6.94B	$7.94B
17.8x	$558.68	$542.10	$525.52	$508.94	$492.36
19.8x	$628.62	$612.04	$595.45	$578.87	$562.29
21.8x	$698.55	$681.97	$665.39	$648.81	$632.23
23.8x	$768.49	$751.91	$735.33	$718.75	$702.17
25.8x	$838.42	$821.84	$805.26	$788.68	$772.10

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