O — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($67.56)
DCF	$347.50	+414.4%
Graham Number	$33.34	-50.6%
Reverse DCF	—	implied g: 16.6%
DDM	$66.74	-1.2%
EV/EBITDA	$68.29	+1.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.68B

Near-term growth (yrs 1–5)(%)Rev: 11.0% / EPS: 41.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.83%

Computed WACC: 5.83%

Cost of equity (Re)8.56%(Rf 4.30% + β 0.77 × 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)68.19%

Debt weight (D/V)31.81%

Results

Intrinsic Value / share$814.85

Current Price$67.56

Upside / Downside+1106.1%

Net Debt (used)$29.05B

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

WACC \ Near-term	33.2%	37.2%	41.2%	45.2%	49.2%
7.0%	$415.62	$485.36	$563.61	$651.16	$748.80
8.0%	$319.66	$374.13	$435.23	$503.56	$579.76
9.0%	$254.08	$298.11	$347.50	$402.72	$464.27
10.0%	$206.66	$243.17	$284.09	$329.84	$380.82
11.0%	$170.95	$201.79	$236.35	$274.97	$318.00

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.17

Book Value / share($)Yahoo: $42.23

Results

Graham Number$33.34

Current Price$67.56

Margin of Safety-50.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.83%

Terminal growth rate(%)

Computed WACC: 5.83%

Cost of equity (Re)8.56%(Rf 4.30% + β 0.77 × 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)68.19%

Debt weight (D/V)31.81%

Results

Current Price$67.56

Implied Near-term FCF Growth5.0%

Historical Revenue Growth11.0%

Historical Earnings Growth41.2%

Base FCF (TTM)$2.68B

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: $3.24

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$66.74

Current Price$67.56

Upside / Downside-1.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.11B

Target EV/EBITDA multipleCurrent: 18.1×

Net Debt($B)Default: $29.05B

Results

Implied Equity Value / share$68.29

Current Price$67.56

Upside / Downside+1.1%

Implied EV$92.73B

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

Mult \ Net Debt	$15.05B	$22.05B	$29.05B	$36.05B	$43.05B
14.1x	$61.37	$53.87	$46.36	$38.85	$31.34
16.1x	$72.34	$64.83	$57.33	$49.82	$42.31
18.1x	$83.31	$75.80	$68.29	$60.79	$53.28
20.1x	$94.28	$86.77	$79.26	$71.76	$64.25
22.1x	$105.24	$97.74	$90.23	$82.72	$75.22

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