MORN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($182.31)
DCF	$224.49	+23.1%
Graham Number	$78.38	-57.0%
Reverse DCF	—	implied g: 5.2%
DDM	$41.20	-77.4%
EV/EBITDA	$182.32	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $446.38M

Near-term growth (yrs 1–5)(%)Rev: 8.5% / EPS: 4.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.79%

Computed WACC: 8.79%

Cost of equity (Re)10.27%(Rf 4.30% + β 1.08 × 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)85.60%

Debt weight (D/V)14.40%

Results

Intrinsic Value / share$233.42

Current Price$182.31

Upside / Downside+28.0%

Net Debt (used)$732.40M

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

WACC \ Near-term	0.5%	4.5%	8.5%	12.5%	16.5%
7.0%	$231.84	$281.32	$338.66	$404.76	$480.62
8.0%	$185.83	$225.49	$271.37	$324.21	$384.78
9.0%	$154.02	$186.90	$224.89	$268.60	$318.65
10.0%	$130.73	$158.66	$190.90	$227.94	$270.31
11.0%	$112.94	$137.11	$164.97	$196.95	$233.50

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $8.88

Book Value / share($)Yahoo: $30.75

Results

Graham Number$78.38

Current Price$182.31

Margin of Safety-57.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.79%

Terminal growth rate(%)

Computed WACC: 8.79%

Cost of equity (Re)10.27%(Rf 4.30% + β 1.08 × 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)85.60%

Debt weight (D/V)14.40%

Results

Current Price$182.31

Implied Near-term FCF Growth4.7%

Historical Revenue Growth8.5%

Historical Earnings Growth4.5%

Base FCF (TTM)$446.38M

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: $2.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$41.20

Current Price$182.31

Upside / Downside-77.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $593.40M

Target EV/EBITDA multipleCurrent: 13.4×

Net Debt($B)Default: $732.40M

Results

Implied Equity Value / share$182.32

Current Price$182.31

Upside / Downside+0.0%

Implied EV$7.95B

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

Mult \ Net Debt	-$1.27B	-$267.60M	$732.40M	$1.73B	$2.73B
9.4x	$172.88	$147.62	$122.35	$97.09	$71.83
11.4x	$202.86	$177.60	$152.33	$127.07	$101.81
13.4x	$232.84	$207.58	$182.32	$157.05	$131.79
15.4x	$262.82	$237.56	$212.30	$187.04	$161.77
17.4x	$292.81	$267.54	$242.28	$217.02	$191.76

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