NEU — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($625.33)
DCF	$669.90	+7.1%
Graham Number	$435.08	-30.4%
Reverse DCF	—	implied g: 4.0%
DDM	$236.90	-62.1%
EV/EBITDA	$625.31	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $409.96M

Near-term growth (yrs 1–5)(%)Rev: -2.9% / EPS: -25.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.62%

Computed WACC: 6.62%

Cost of equity (Re)7.15%(Rf 4.30% + β 0.52 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.71%

Debt weight (D/V)14.29%

Results

Intrinsic Value / share$1117.74

Current Price$625.33

Upside / Downside+78.7%

Net Debt (used)$902.17M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$676.48	$832.69	$1014.42	$1224.76	$1467.02
8.0%	$539.02	$664.76	$810.81	$979.62	$1173.83
9.0%	$443.77	$548.47	$669.90	$810.07	$971.13
10.0%	$373.85	$463.17	$566.61	$685.85	$822.71
11.0%	$320.32	$397.91	$487.65	$590.97	$709.41

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $44.46

Book Value / share($)Yahoo: $189.23

Results

Graham Number$435.08

Current Price$625.33

Margin of Safety-30.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.62%

Terminal growth rate(%)

Computed WACC: 6.62%

Cost of equity (Re)7.15%(Rf 4.30% + β 0.52 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.71%

Debt weight (D/V)14.29%

Results

Current Price$625.33

Implied Near-term FCF Growth-3.2%

Historical Revenue Growth-2.9%

Historical Earnings Growth-25.2%

Base FCF (TTM)$409.96M

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: $11.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$236.90

Current Price$625.33

Upside / Downside-62.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $719.58M

Target EV/EBITDA multipleCurrent: 9.4×

Net Debt($B)Default: $902.17M

Results

Implied Equity Value / share$625.31

Current Price$625.33

Upside / Downside-0.0%

Implied EV$6.78B

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

Mult \ Net Debt	-$1.10B	-$97.83M	$902.17M	$1.90B	$2.90B
5.4x	$531.85	$425.43	$319.02	$212.61	$106.19
7.4x	$684.99	$578.58	$472.16	$365.75	$259.34
9.4x	$838.13	$731.72	$625.31	$518.90	$412.48
11.4x	$991.28	$884.87	$778.45	$672.04	$565.63
13.4x	$1144.42	$1038.01	$931.60	$825.19	$718.77

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