MSA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($198.18)
DCF	$79.55	-59.9%
Graham Number	$74.76	-62.3%
Reverse DCF	—	implied g: 19.4%
DDM	$43.67	-78.0%
EV/EBITDA	$195.50	-1.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $202.76M

Near-term growth (yrs 1–5)(%)Rev: 2.2% / EPS: -0.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.93%

Computed WACC: 8.93%

Cost of equity (Re)9.66%(Rf 4.30% + β 0.97 × 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)92.38%

Debt weight (D/V)7.62%

Results

Intrinsic Value / share$80.56

Current Price$198.18

Upside / Downside-59.4%

Net Debt (used)$475.22M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$80.34	$99.06	$120.84	$146.05	$175.09
8.0%	$63.86	$78.93	$96.44	$116.67	$139.95
9.0%	$52.44	$64.99	$79.55	$96.35	$115.65
10.0%	$44.06	$54.77	$67.17	$81.46	$97.86
11.0%	$37.65	$46.95	$57.70	$70.09	$84.28

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.09

Book Value / share($)Yahoo: $35.04

Results

Graham Number$74.76

Current Price$198.18

Margin of Safety-62.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.93%

Terminal growth rate(%)

Computed WACC: 8.93%

Cost of equity (Re)9.66%(Rf 4.30% + β 0.97 × 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)92.38%

Debt weight (D/V)7.62%

Results

Current Price$198.18

Implied Near-term FCF Growth19.1%

Historical Revenue Growth2.2%

Historical Earnings Growth-0.4%

Base FCF (TTM)$202.76M

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: $2.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$43.67

Current Price$198.18

Upside / Downside-78.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $493.91M

Target EV/EBITDA multipleCurrent: 16.3×

Net Debt($B)Default: $475.22M

Results

Implied Equity Value / share$195.50

Current Price$198.18

Upside / Downside-1.4%

Implied EV$8.06B

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

Mult \ Net Debt	-$1.52B	-$524.78M	$475.22M	$1.48B	$2.48B
12.3x	$196.13	$170.34	$144.55	$118.76	$92.97
14.3x	$221.61	$195.82	$170.03	$144.24	$118.45
16.3x	$247.08	$221.29	$195.50	$169.71	$143.92
18.3x	$272.56	$246.77	$220.98	$195.19	$169.40
20.3x	$298.03	$272.24	$246.45	$220.66	$194.87

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