NWSA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($23.97)
DCF	$81.84	+241.4%
Graham Number	$16.53	-31.0%
Reverse DCF	—	implied g: -14.3%
DDM	$4.12	-82.8%
EV/EBITDA	$37.89	+58.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.72B

Near-term growth (yrs 1–5)(%)Rev: 5.5% / EPS: -9.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.95%

Computed WACC: 7.95%

Cost of equity (Re)9.63%(Rf 4.30% + β 0.97 × 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)82.54%

Debt weight (D/V)17.46%

Results

Intrinsic Value / share$98.52

Current Price$23.97

Upside / Downside+311.0%

Net Debt (used)$867.00M

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

WACC \ Near-term	-2.5%	1.5%	5.5%	9.5%	13.5%
7.0%	$82.96	$100.16	$120.16	$143.29	$169.92
8.0%	$67.70	$81.53	$97.59	$116.15	$137.48
9.0%	$57.13	$68.64	$81.98	$97.38	$115.06
10.0%	$49.37	$59.18	$70.54	$83.63	$98.65
11.0%	$43.43	$51.95	$61.80	$73.14	$86.12

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.77

Book Value / share($)Yahoo: $15.77

Results

Graham Number$16.53

Current Price$23.97

Margin of Safety-31.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.95%

Terminal growth rate(%)

Computed WACC: 7.95%

Cost of equity (Re)9.63%(Rf 4.30% + β 0.97 × 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)82.54%

Debt weight (D/V)17.46%

Results

Current Price$23.97

Implied Near-term FCF Growth-16.5%

Historical Revenue Growth5.5%

Historical Earnings Growth-9.9%

Base FCF (TTM)$1.72B

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: $0.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$4.12

Current Price$23.97

Upside / Downside-82.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.19B

Target EV/EBITDA multipleCurrent: 12.5×

Net Debt($B)Default: $867.00M

Results

Implied Equity Value / share$37.89

Current Price$23.97

Upside / Downside+58.1%

Implied EV$14.85B

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

Mult \ Net Debt	-$1.13B	-$133.00M	$867.00M	$1.87B	$2.87B
8.5x	$30.45	$27.74	$25.03	$22.32	$19.61
10.5x	$36.88	$34.17	$31.46	$28.75	$26.04
12.5x	$43.31	$40.60	$37.89	$35.18	$32.47
14.5x	$49.75	$47.04	$44.33	$41.62	$38.91
16.5x	$56.18	$53.47	$50.76	$48.05	$45.34

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