MRCY — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($91.01)
DCF	$57.20	-37.2%
Graham Number	—	—
Reverse DCF	—	implied g: 23.3%
DDM	—	—
EV/EBITDA	$91.01	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $111.77M

Near-term growth (yrs 1–5)(%)Rev: 15.4% / EPS: -34.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.57%

Computed WACC: 8.57%

Cost of equity (Re)8.51%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)12.31%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.26%

Debt weight (D/V)4.74%

Results

Intrinsic Value / share$61.91

Current Price$91.01

Upside / Downside-32.0%

Net Debt (used)$157.67M

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

WACC \ Near-term	7.4%	11.4%	15.4%	19.4%	23.4%
7.0%	$61.12	$73.12	$86.93	$102.73	$120.73
8.0%	$48.80	$58.35	$69.32	$81.86	$96.15
9.0%	$40.31	$48.17	$57.20	$67.51	$79.24
10.0%	$34.12	$40.76	$48.36	$57.04	$66.91
11.0%	$29.41	$35.12	$41.65	$49.10	$57.56

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.52

Book Value / share($)Yahoo: $24.59

Results

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

Graham Number—

Current Price$91.01

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.57%

Terminal growth rate(%)

Computed WACC: 8.57%

Cost of equity (Re)8.51%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)12.31%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.26%

Debt weight (D/V)4.74%

Results

Current Price$91.01

Implied Near-term FCF Growth21.9%

Historical Revenue Growth15.4%

Historical Earnings Growth-34.7%

Base FCF (TTM)$111.77M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$91.01

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $76.83M

Target EV/EBITDA multipleCurrent: 73.1×

Net Debt($B)Default: $157.67M

Results

Implied Equity Value / share$91.01

Current Price$91.01

Upside / Downside-0.0%

Implied EV$5.62B

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

Mult \ Net Debt	-$1.84B	-$842.33M	$157.67M	$1.16B	$2.16B
69.1x	$119.21	$102.55	$85.89	$69.23	$52.56
71.1x	$121.77	$105.11	$88.45	$71.79	$55.12
73.1x	$124.33	$107.67	$91.01	$74.35	$57.68
75.1x	$126.90	$110.23	$93.57	$76.91	$60.24
77.1x	$129.46	$112.79	$96.13	$79.47	$62.81

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