NSC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($317.47)
DCF	$40.93	-87.1%
Graham Number	$141.03	-55.6%
Reverse DCF	—	implied g: 26.6%
DDM	$111.24	-65.0%
EV/EBITDA	$317.47	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.45B

Near-term growth (yrs 1–5)(%)Rev: -1.7% / EPS: -11.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.26%

Computed WACC: 9.26%

Cost of equity (Re)11.58%(Rf 4.30% + β 1.32 × 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)79.99%

Debt weight (D/V)20.01%

Results

Intrinsic Value / share$36.51

Current Price$317.47

Upside / Downside-88.5%

Net Debt (used)$16.31B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$41.90	$65.06	$92.01	$123.19	$159.11
8.0%	$21.53	$40.17	$61.82	$86.85	$115.64
9.0%	$7.40	$22.93	$40.93	$61.71	$85.59
10.0%	$-2.96	$10.28	$25.61	$43.29	$63.58
11.0%	$-10.90	$0.60	$13.91	$29.23	$46.79

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $12.76

Book Value / share($)Yahoo: $69.28

Results

Graham Number$141.03

Current Price$317.47

Margin of Safety-55.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.26%

Terminal growth rate(%)

Computed WACC: 9.26%

Cost of equity (Re)11.58%(Rf 4.30% + β 1.32 × 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)79.99%

Debt weight (D/V)20.01%

Results

Current Price$317.47

Implied Near-term FCF Growth27.4%

Historical Revenue Growth-1.7%

Historical Earnings Growth-11.4%

Base FCF (TTM)$1.45B

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: $5.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$111.24

Current Price$317.47

Upside / Downside-65.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.60B

Target EV/EBITDA multipleCurrent: 15.7×

Net Debt($B)Default: $16.31B

Results

Implied Equity Value / share$317.47

Current Price$317.47

Upside / Downside+0.0%

Implied EV$87.60B

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

Mult \ Net Debt	$8.31B	$12.31B	$16.31B	$20.31B	$24.31B
11.7x	$253.40	$235.59	$217.78	$199.97	$182.16
13.7x	$303.25	$285.44	$267.63	$249.81	$232.00
15.7x	$353.09	$335.28	$317.47	$299.66	$281.85
17.7x	$402.94	$385.13	$367.32	$349.51	$331.69
19.7x	$452.79	$434.98	$417.16	$399.35	$381.54

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