MSI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($486.11)
DCF	$271.89	-44.1%
Graham Number	$64.57	-86.7%
Reverse DCF	—	implied g: 21.2%
DDM	$99.70	-79.5%
EV/EBITDA	$486.21	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.00B

Near-term growth (yrs 1–5)(%)Rev: 12.3% / EPS: 8.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.98%

Computed WACC: 8.98%

Cost of equity (Re)9.58%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)5.11%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)89.24%

Debt weight (D/V)10.76%

Results

Intrinsic Value / share$273.52

Current Price$486.11

Upside / Downside-43.7%

Net Debt (used)$8.60B

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

WACC \ Near-term	4.3%	8.3%	12.3%	16.3%	20.3%
7.0%	$288.43	$353.97	$429.59	$516.40	$615.65
8.0%	$224.00	$276.30	$336.56	$405.69	$484.65
9.0%	$179.55	$222.73	$272.44	$329.40	$394.40
10.0%	$147.07	$183.61	$225.62	$273.73	$328.57
11.0%	$122.32	$153.82	$190.00	$231.39	$278.53

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $12.74

Book Value / share($)Yahoo: $14.54

Results

Graham Number$64.57

Current Price$486.11

Margin of Safety-86.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.98%

Terminal growth rate(%)

Computed WACC: 8.98%

Cost of equity (Re)9.58%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)5.11%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)89.24%

Debt weight (D/V)10.76%

Results

Current Price$486.11

Implied Near-term FCF Growth21.1%

Historical Revenue Growth12.3%

Historical Earnings Growth8.6%

Base FCF (TTM)$2.00B

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: $4.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$99.70

Current Price$486.11

Upside / Downside-79.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.52B

Target EV/EBITDA multipleCurrent: 25.3×

Net Debt($B)Default: $8.60B

Results

Implied Equity Value / share$486.21

Current Price$486.11

Upside / Downside+0.0%

Implied EV$89.15B

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

Mult \ Net Debt	$4.60B	$6.60B	$8.60B	$10.60B	$12.60B
21.3x	$425.29	$413.22	$401.14	$389.07	$377.00
23.3x	$467.82	$455.75	$443.68	$431.60	$419.53
25.3x	$510.36	$498.28	$486.21	$474.14	$462.06
27.3x	$552.89	$540.82	$528.74	$516.67	$504.60
29.3x	$595.42	$583.35	$571.28	$559.20	$547.13

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