MOS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($26.01)
DCF	$-40.56	-255.9%
Graham Number	$38.16	+46.7%
Reverse DCF	—	—
DDM	$18.13	-30.3%
EV/EBITDA	$26.48	+1.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$433.05M

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.76%

Computed WACC: 7.76%

Cost of equity (Re)9.50%(Rf 4.30% + β 0.95 × ERP 5.50%)

Cost of debt (Rd)6.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)61.00%

Debt weight (D/V)39.00%

Results

Intrinsic Value / share$-46.52

Current Price$26.01

Upside / Downside-278.8%

Net Debt (used)$5.00B

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

WACC \ Near-term	-2.4%	1.6%	5.6%	9.6%	13.6%
7.0%	$-40.86	$-45.92	$-51.79	$-58.59	$-66.42
8.0%	$-36.37	$-40.43	$-45.15	$-50.61	$-56.88
9.0%	$-33.25	$-36.64	$-40.56	$-45.09	$-50.28
10.0%	$-30.97	$-33.86	$-37.19	$-41.04	$-45.45
11.0%	$-29.22	$-31.73	$-34.62	$-37.95	$-41.77

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.70

Book Value / share($)Yahoo: $38.07

Results

Graham Number$38.16

Current Price$26.01

Margin of Safety+46.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.76%

Terminal growth rate(%)

Computed WACC: 7.76%

Cost of equity (Re)9.50%(Rf 4.30% + β 0.95 × ERP 5.50%)

Cost of debt (Rd)6.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)61.00%

Debt weight (D/V)39.00%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$26.01

Implied Near-term FCF Growth—

Historical Revenue Growth5.6%

Historical Earnings Growth—

Base FCF (TTM)-$433.05M

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: $0.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$18.13

Current Price$26.01

Upside / Downside-30.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.26B

Target EV/EBITDA multipleCurrent: 5.9×

Net Debt($B)Default: $5.00B

Results

Implied Equity Value / share$26.48

Current Price$26.01

Upside / Downside+1.8%

Implied EV$13.41B

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

Mult \ Net Debt	$3.00B	$4.00B	$5.00B	$6.00B	$7.00B
1.9x	$4.33	$1.18	$-1.97	$-5.12	$-8.27
3.9x	$18.55	$15.40	$12.25	$9.10	$5.95
5.9x	$32.78	$29.63	$26.48	$23.33	$20.18
7.9x	$47.00	$43.85	$40.70	$37.55	$34.40
9.9x	$61.23	$58.08	$54.93	$51.78	$48.63

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