MMM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($165.32)
DCF	$32.14	-80.6%
Graham Number	$34.60	-79.1%
Reverse DCF	—	implied g: 30.1%
DDM	$64.27	-61.1%
EV/EBITDA	$165.40	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.26B

Near-term growth (yrs 1–5)(%)Rev: 2.0% / EPS: -19.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.67%

Computed WACC: 9.67%

Cost of equity (Re)10.71%(Rf 4.30% + β 1.17 × ERP 5.50%)

Cost of debt (Rd)3.49%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.90%

Debt weight (D/V)13.10%

Results

Intrinsic Value / share$28.17

Current Price$165.32

Upside / Downside-83.0%

Net Debt (used)$5.20B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$32.50	$41.07	$51.03	$62.57	$75.86
8.0%	$24.96	$31.85	$39.87	$49.12	$59.78
9.0%	$19.73	$25.48	$32.14	$39.82	$48.66
10.0%	$15.90	$20.80	$26.47	$33.01	$40.52
11.0%	$12.96	$17.22	$22.14	$27.81	$34.30

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.00

Book Value / share($)Yahoo: $8.87

Results

Graham Number$34.60

Current Price$165.32

Margin of Safety-79.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.67%

Terminal growth rate(%)

Computed WACC: 9.67%

Cost of equity (Re)10.71%(Rf 4.30% + β 1.17 × ERP 5.50%)

Cost of debt (Rd)3.49%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.90%

Debt weight (D/V)13.10%

Results

Current Price$165.32

Implied Near-term FCF Growth32.4%

Historical Revenue Growth2.0%

Historical Earnings Growth-19.9%

Base FCF (TTM)$1.26B

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$165.32

Upside / Downside-61.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.02B

Target EV/EBITDA multipleCurrent: 15.3×

Net Debt($B)Default: $5.20B

Results

Implied Equity Value / share$165.40

Current Price$165.32

Upside / Downside+0.0%

Implied EV$92.32B

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

Mult \ Net Debt	$3.20B	$4.20B	$5.20B	$6.20B	$7.20B
11.3x	$123.51	$121.61	$119.71	$117.81	$115.92
13.3x	$146.35	$144.46	$142.56	$140.66	$138.76
15.3x	$169.20	$167.30	$165.40	$163.50	$161.60
17.3x	$192.04	$190.14	$188.24	$186.35	$184.45
19.3x	$214.89	$212.99	$211.09	$209.19	$207.29

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