MTG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($26.62)
DCF	$44.62	+67.6%
Graham Number	$40.72	+53.0%
Reverse DCF	—	implied g: -3.4%
DDM	$12.36	-53.6%
EV/EBITDA	$26.90	+1.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $566.42M

Near-term growth (yrs 1–5)(%)Rev: -0.9% / EPS: 3.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.25%

Computed WACC: 8.25%

Cost of equity (Re)8.69%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)5.51%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)89.93%

Debt weight (D/V)10.07%

Results

Intrinsic Value / share$50.67

Current Price$26.62

Upside / Downside+90.4%

Net Debt (used)$277.15M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$45.01	$54.37	$65.26	$77.87	$92.38
8.0%	$36.77	$44.31	$53.06	$63.18	$74.81
9.0%	$31.07	$37.34	$44.62	$53.02	$62.67
10.0%	$26.88	$32.23	$38.43	$45.57	$53.77
11.0%	$23.67	$28.32	$33.70	$39.89	$46.98

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.14

Book Value / share($)Yahoo: $23.46

Results

Graham Number$40.72

Current Price$26.62

Margin of Safety+53.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.25%

Terminal growth rate(%)

Computed WACC: 8.25%

Cost of equity (Re)8.69%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)5.51%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)89.93%

Debt weight (D/V)10.07%

Results

Current Price$26.62

Implied Near-term FCF Growth-5.3%

Historical Revenue Growth-0.9%

Historical Earnings Growth3.9%

Base FCF (TTM)$566.42M

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: $0.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$12.36

Current Price$26.62

Upside / Downside-53.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $971.09M

Target EV/EBITDA multipleCurrent: 6.3×

Net Debt($B)Default: $277.15M

Results

Implied Equity Value / share$26.90

Current Price$26.62

Upside / Downside+1.1%

Implied EV$6.11B

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

Mult \ Net Debt	-$1.72B	-$722.85M	$277.15M	$1.28B	$2.28B
2.3x	$18.21	$13.59	$8.98	$4.36	$-0.26
4.3x	$27.17	$22.55	$17.94	$13.32	$8.71
6.3x	$36.13	$31.52	$26.90	$22.29	$17.67
8.3x	$45.10	$40.48	$35.87	$31.25	$26.64
10.3x	$54.06	$49.45	$44.83	$40.22	$35.60

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