MSM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($94.08)
DCF	$57.13	-39.3%
Graham Number	$45.21	-51.9%
Reverse DCF	—	implied g: 19.5%
DDM	$71.69	-23.8%
EV/EBITDA	$94.11	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $142.81M

Near-term growth (yrs 1–5)(%)Rev: 4.0% / EPS: 11.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.92%

Computed WACC: 7.92%

Cost of equity (Re)8.80%(Rf 4.30% + β 0.82 × 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)90.05%

Debt weight (D/V)9.95%

Results

Intrinsic Value / share$71.54

Current Price$94.08

Upside / Downside-24.0%

Net Debt (used)$539.77M

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

WACC \ Near-term	3.8%	7.8%	11.8%	15.8%	19.8%
7.0%	$60.24	$73.75	$89.34	$107.25	$127.74
8.0%	$47.06	$57.84	$70.28	$84.55	$100.85
9.0%	$37.96	$46.87	$57.13	$68.90	$82.33
10.0%	$31.31	$38.86	$47.54	$57.48	$68.81
11.0%	$26.24	$32.75	$40.23	$48.79	$58.54

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.67

Book Value / share($)Yahoo: $24.76

Results

Graham Number$45.21

Current Price$94.08

Margin of Safety-51.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.92%

Terminal growth rate(%)

Computed WACC: 7.92%

Cost of equity (Re)8.80%(Rf 4.30% + β 0.82 × 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)90.05%

Debt weight (D/V)9.95%

Results

Current Price$94.08

Implied Near-term FCF Growth15.9%

Historical Revenue Growth4.0%

Historical Earnings Growth11.8%

Base FCF (TTM)$142.81M

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: $3.48

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$71.69

Current Price$94.08

Upside / Downside-23.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $414.27M

Target EV/EBITDA multipleCurrent: 14.0×

Net Debt($B)Default: $539.77M

Results

Implied Equity Value / share$94.11

Current Price$94.08

Upside / Downside+0.0%

Implied EV$5.79B

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

Mult \ Net Debt	-$1.46B	-$460.23M	$539.77M	$1.54B	$2.54B
10.0x	$100.26	$82.34	$64.42	$46.50	$28.58
12.0x	$115.10	$97.18	$79.26	$61.34	$43.42
14.0x	$129.95	$112.03	$94.11	$76.19	$58.27
16.0x	$144.80	$126.88	$108.96	$91.04	$73.12
18.0x	$159.65	$141.73	$123.81	$105.89	$87.97

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