MTN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($134.92)
DCF	$90.60	-32.9%
Graham Number	$26.09	-80.7%
Reverse DCF	—	implied g: 9.0%
DDM	$182.93	+35.6%
EV/EBITDA	$143.64	+6.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $346.30M

Near-term growth (yrs 1–5)(%)Rev: 4.1% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.98%

Computed WACC: 6.98%

Cost of equity (Re)8.71%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)5.74%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)58.65%

Debt weight (D/V)41.35%

Results

Intrinsic Value / share$168.15

Current Price$134.92

Upside / Downside+24.6%

Net Debt (used)$2.84B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$92.06	$126.72	$167.04	$213.71	$267.46
8.0%	$61.56	$89.46	$121.86	$159.32	$202.41
9.0%	$40.42	$63.65	$90.60	$121.70	$157.43
10.0%	$24.91	$44.73	$67.68	$94.14	$124.50
11.0%	$13.03	$30.25	$50.16	$73.08	$99.36

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.95

Book Value / share($)Yahoo: $4.35

Results

Graham Number$26.09

Current Price$134.92

Margin of Safety-80.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.98%

Terminal growth rate(%)

Computed WACC: 6.98%

Cost of equity (Re)8.71%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)5.74%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)58.65%

Debt weight (D/V)41.35%

Results

Current Price$134.92

Implied Near-term FCF Growth2.7%

Historical Revenue Growth4.1%

Historical Earnings Growth—

Base FCF (TTM)$346.30M

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: $8.88

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$182.93

Current Price$134.92

Upside / Downside+35.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $842.20M

Target EV/EBITDA multipleCurrent: 9.5×

Net Debt($B)Default: $2.84B

Results

Implied Equity Value / share$143.64

Current Price$134.92

Upside / Downside+6.5%

Implied EV$7.98B

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

Mult \ Net Debt	$838.53M	$1.84B	$2.84B	$3.84B	$4.84B
5.5x	$105.38	$77.43	$49.47	$21.52	$-6.43
7.5x	$152.46	$124.51	$96.56	$68.61	$40.65
9.5x	$199.54	$171.59	$143.64	$115.69	$87.74
11.5x	$246.63	$218.67	$190.72	$162.77	$134.82
13.5x	$293.71	$265.76	$237.80	$209.85	$181.90

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