NOV — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($20.03)
DCF	$34.55	+72.5%
Graham Number	$12.35	-38.4%
Reverse DCF	—	implied g: -3.5%
DDM	$6.59	-67.1%
EV/EBITDA	$20.41	+1.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $754.12M

Near-term growth (yrs 1–5)(%)Rev: -1.3% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.02%

Computed WACC: 8.02%

Cost of equity (Re)9.30%(Rf 4.30% + β 0.91 × ERP 5.50%)

Cost of debt (Rd)5.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)75.74%

Debt weight (D/V)24.26%

Results

Intrinsic Value / share$41.15

Current Price$20.03

Upside / Downside+105.4%

Net Debt (used)$788.00M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$34.86	$42.36	$51.07	$61.16	$72.78
8.0%	$28.27	$34.30	$41.31	$49.40	$58.72
9.0%	$23.70	$28.72	$34.55	$41.27	$49.00
10.0%	$20.35	$24.63	$29.59	$35.31	$41.88
11.0%	$17.78	$21.50	$25.81	$30.76	$36.44

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.39

Book Value / share($)Yahoo: $17.37

Results

Graham Number$12.35

Current Price$20.03

Margin of Safety-38.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.02%

Terminal growth rate(%)

Computed WACC: 8.02%

Cost of equity (Re)9.30%(Rf 4.30% + β 0.91 × ERP 5.50%)

Cost of debt (Rd)5.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)75.74%

Debt weight (D/V)24.26%

Results

Current Price$20.03

Implied Near-term FCF Growth-6.0%

Historical Revenue Growth-1.3%

Historical Earnings Growth—

Base FCF (TTM)$754.12M

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: $0.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$6.59

Current Price$20.03

Upside / Downside-67.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.03B

Target EV/EBITDA multipleCurrent: 7.9×

Net Debt($B)Default: $788.00M

Results

Implied Equity Value / share$20.41

Current Price$20.03

Upside / Downside+1.9%

Implied EV$8.14B

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

Mult \ Net Debt	-$1.21B	-$212.00M	$788.00M	$1.79B	$2.79B
3.9x	$14.50	$11.73	$8.96	$6.18	$3.41
5.9x	$20.23	$17.46	$14.68	$11.91	$9.13
7.9x	$25.96	$23.18	$20.41	$17.63	$14.86
9.9x	$31.69	$28.91	$26.14	$23.36	$20.59
11.9x	$37.41	$34.64	$31.86	$29.09	$26.31

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