NOC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($724.38)
DCF	$553.90	-23.5%
Graham Number	$277.04	-61.8%
Reverse DCF	—	implied g: 19.3%
DDM	$190.34	-73.7%
EV/EBITDA	$724.39	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.90B

Near-term growth (yrs 1–5)(%)Rev: 9.6% / EPS: 15.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.33%

Computed WACC: 4.33%

Cost of equity (Re)4.51%(Rf 4.30% + β 0.04 × ERP 5.50%)

Cost of debt (Rd)4.16%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.25%

Debt weight (D/V)14.75%

Results

Intrinsic Value / share$2420.02

Current Price$724.38

Upside / Downside+234.1%

Net Debt (used)$13.48B

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

WACC \ Near-term	7.2%	11.2%	15.2%	19.2%	23.2%
7.0%	$595.72	$726.02	$875.85	$1047.37	$1242.87
8.0%	$462.43	$566.09	$685.18	$821.39	$976.53
9.0%	$370.58	$455.93	$553.90	$665.84	$793.25
10.0%	$303.57	$375.60	$458.19	$552.49	$659.74
11.0%	$252.60	$314.53	$385.47	$466.40	$558.36

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $29.05

Book Value / share($)Yahoo: $117.42

Results

Graham Number$277.04

Current Price$724.38

Margin of Safety-61.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.33%

Terminal growth rate(%)

Computed WACC: 4.33%

Cost of equity (Re)4.51%(Rf 4.30% + β 0.04 × ERP 5.50%)

Cost of debt (Rd)4.16%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.25%

Debt weight (D/V)14.75%

Results

Current Price$724.38

Implied Near-term FCF Growth-1.5%

Historical Revenue Growth9.6%

Historical Earnings Growth15.2%

Base FCF (TTM)$2.90B

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: $9.24

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$190.34

Current Price$724.38

Upside / Downside-73.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.82B

Target EV/EBITDA multipleCurrent: 17.1×

Net Debt($B)Default: $13.48B

Results

Implied Equity Value / share$724.39

Current Price$724.38

Upside / Downside+0.0%

Implied EV$116.29B

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

Mult \ Net Debt	$7.48B	$10.48B	$13.48B	$16.48B	$19.48B
13.1x	$574.45	$553.31	$532.17	$511.03	$489.90
15.1x	$670.56	$649.42	$628.28	$607.14	$586.01
17.1x	$766.67	$745.53	$724.39	$703.25	$682.11
19.1x	$862.78	$841.64	$820.50	$799.36	$778.22
21.1x	$958.89	$937.75	$916.61	$895.47	$874.33

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