MO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($68.69)
DCF	$64.23	-6.5%
Graham Number	—	—
Reverse DCF	—	implied g: 6.0%
DDM	$87.34	+27.2%
EV/EBITDA	$68.62	-0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $7.33B

Near-term growth (yrs 1–5)(%)Rev: -0.5% / EPS: -62.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.47%

Computed WACC: 5.47%

Cost of equity (Re)6.69%(Rf 4.30% + β 0.43 × 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)81.77%

Debt weight (D/V)18.23%

Results

Intrinsic Value / share$156.78

Current Price$68.69

Upside / Downside+128.2%

Net Debt (used)$21.24B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$64.89	$80.57	$98.82	$119.94	$144.27
8.0%	$51.08	$63.71	$78.38	$95.33	$114.83
9.0%	$41.52	$52.03	$64.23	$78.30	$94.47
10.0%	$34.50	$43.47	$53.85	$65.83	$79.57
11.0%	$29.12	$36.91	$45.93	$56.30	$68.19

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.12

Book Value / share($)Yahoo: $-2.09

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$68.69

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.47%

Terminal growth rate(%)

Computed WACC: 5.47%

Cost of equity (Re)6.69%(Rf 4.30% + β 0.43 × 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)81.77%

Debt weight (D/V)18.23%

Results

Current Price$68.69

Implied Near-term FCF Growth-6.0%

Historical Revenue Growth-0.5%

Historical Earnings Growth-62.9%

Base FCF (TTM)$7.33B

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: $4.24

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$87.34

Current Price$68.69

Upside / Downside+27.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $12.58B

Target EV/EBITDA multipleCurrent: 10.8×

Net Debt($B)Default: $21.24B

Results

Implied Equity Value / share$68.62

Current Price$68.69

Upside / Downside-0.1%

Implied EV$136.12B

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

Mult \ Net Debt	$11.24B	$16.24B	$21.24B	$26.24B	$31.24B
6.8x	$44.53	$41.55	$38.56	$35.57	$32.59
8.8x	$59.56	$56.58	$53.59	$50.60	$47.62
10.8x	$74.59	$71.61	$68.62	$65.63	$62.65
12.8x	$89.62	$86.63	$83.65	$80.66	$77.68
14.8x	$104.65	$101.66	$98.68	$95.69	$92.70

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