NJR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($54.49)
DCF	$-137.81	-352.9%
Graham Number	$41.72	-23.4%
Reverse DCF	—	—
DDM	$39.14	-28.2%
EV/EBITDA	$81.89	+50.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$281.29M

Near-term growth (yrs 1–5)(%)Rev: 23.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.77%

Computed WACC: 4.77%

Cost of equity (Re)7.59%(Rf 4.30% + β 0.60 × 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)62.83%

Debt weight (D/V)37.17%

Results

Intrinsic Value / share$-444.25

Current Price$54.49

Upside / Downside-915.3%

Net Debt (used)$0

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

WACC \ Near-term	15.0%	19.0%	23.0%	27.0%	31.0%
7.0%	$-152.03	$-179.12	$-210.03	$-245.14	$-284.87
8.0%	$-121.39	$-142.80	$-167.21	$-194.91	$-226.25
9.0%	$-100.35	$-117.86	$-137.81	$-160.44	$-186.02
10.0%	$-85.05	$-99.73	$-116.44	$-135.39	$-156.80
11.0%	$-73.46	$-86.00	$-100.27	$-116.43	$-134.68

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.25

Book Value / share($)Yahoo: $23.80

Results

Graham Number$41.72

Current Price$54.49

Margin of Safety-23.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.77%

Terminal growth rate(%)

Computed WACC: 4.77%

Cost of equity (Re)7.59%(Rf 4.30% + β 0.60 × 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)62.83%

Debt weight (D/V)37.17%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$54.49

Implied Near-term FCF Growth—

Historical Revenue Growth23.0%

Historical Earnings Growth—

Base FCF (TTM)-$281.29M

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: $1.90

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$39.14

Current Price$54.49

Upside / Downside-28.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $688.18M

Target EV/EBITDA multipleCurrent: —×

Net Debt($B)Default: $0

Results

Implied Equity Value / share$81.89

Current Price$54.49

Upside / Downside+50.3%

Implied EV$8.26B

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

Mult \ Net Debt	-$2.00B	-$1.00B	$0	$1.00B	$2.00B
8.0x	$74.43	$64.51	$54.59	$44.68	$34.76
10.0x	$88.07	$78.16	$68.24	$58.32	$48.41
12.0x	$101.72	$91.81	$81.89	$71.97	$62.06
14.0x	$115.37	$105.45	$95.54	$85.62	$75.71
16.0x	$129.02	$119.10	$109.19	$99.27	$89.35

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