NWE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($70.06)
DCF	$-131.64	-287.9%
Graham Number	$55.75	-20.4%
Reverse DCF	—	—
DDM	$54.59	-22.1%
EV/EBITDA	$69.95	-0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$188.03M

Near-term growth (yrs 1–5)(%)Rev: 10.9% / EPS: -44.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.03%

Computed WACC: 5.03%

Cost of equity (Re)6.03%(Rf 4.30% + β 0.32 × ERP 5.50%)

Cost of debt (Rd)4.79%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)55.60%

Debt weight (D/V)44.40%

Results

Intrinsic Value / share$-260.63

Current Price$70.06

Upside / Downside-472.0%

Net Debt (used)$3.43B

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

WACC \ Near-term	2.9%	6.9%	10.9%	14.9%	18.9%
7.0%	$-134.93	$-150.32	$-168.10	$-188.54	$-211.95
8.0%	$-120.11	$-132.41	$-146.60	$-162.90	$-181.54
9.0%	$-109.87	$-120.04	$-131.76	$-145.21	$-160.58
10.0%	$-102.39	$-111.01	$-120.93	$-132.30	$-145.28
11.0%	$-96.68	$-104.12	$-112.68	$-122.47	$-133.64

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.94

Book Value / share($)Yahoo: $46.98

Results

Graham Number$55.75

Current Price$70.06

Margin of Safety-20.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.03%

Terminal growth rate(%)

Computed WACC: 5.03%

Cost of equity (Re)6.03%(Rf 4.30% + β 0.32 × ERP 5.50%)

Cost of debt (Rd)4.79%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)55.60%

Debt weight (D/V)44.40%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$70.06

Implied Near-term FCF Growth—

Historical Revenue Growth10.9%

Historical Earnings Growth-44.8%

Base FCF (TTM)-$188.03M

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: $2.65

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$54.59

Current Price$70.06

Upside / Downside-22.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $583.54M

Target EV/EBITDA multipleCurrent: 13.2×

Net Debt($B)Default: $3.43B

Results

Implied Equity Value / share$69.95

Current Price$70.06

Upside / Downside-0.2%

Implied EV$7.73B

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

Mult \ Net Debt	$1.43B	$2.43B	$3.43B	$4.43B	$5.43B
9.2x	$64.51	$48.24	$31.96	$15.69	$-0.59
11.2x	$83.51	$67.23	$50.96	$34.68	$18.41
13.2x	$102.50	$86.23	$69.95	$53.68	$37.40
15.2x	$121.50	$105.22	$88.95	$72.67	$56.40
17.2x	$140.49	$124.22	$107.94	$91.67	$75.39

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