OC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($116.71)
DCF	$89.51	-23.3%
Graham Number	—	—
Reverse DCF	—	implied g: 7.7%
DDM	$60.98	-47.8%
EV/EBITDA	$117.22	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $715.12M

Near-term growth (yrs 1–5)(%)Rev: -16.8% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.82%

Computed WACC: 8.82%

Cost of equity (Re)11.72%(Rf 4.30% + β 1.35 × ERP 5.50%)

Cost of debt (Rd)4.98%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)62.71%

Debt weight (D/V)37.29%

Results

Intrinsic Value / share$94.01

Current Price$116.71

Upside / Downside-19.5%

Net Debt (used)$5.36B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$90.85	$122.71	$159.77	$202.66	$252.06
8.0%	$62.82	$88.46	$118.24	$152.67	$192.27
9.0%	$43.39	$64.74	$89.51	$118.09	$150.94
10.0%	$29.14	$47.35	$68.44	$92.76	$120.67
11.0%	$18.22	$34.04	$52.34	$73.41	$97.56

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.82

Book Value / share($)Yahoo: $48.04

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$116.71

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.82%

Terminal growth rate(%)

Computed WACC: 8.82%

Cost of equity (Re)11.72%(Rf 4.30% + β 1.35 × ERP 5.50%)

Cost of debt (Rd)4.98%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)62.71%

Debt weight (D/V)37.29%

Results

Current Price$116.71

Implied Near-term FCF Growth7.2%

Historical Revenue Growth-16.8%

Historical Earnings Growth—

Base FCF (TTM)$715.12M

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: $2.96

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$60.98

Current Price$116.71

Upside / Downside-47.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.26B

Target EV/EBITDA multipleCurrent: 6.5×

Net Debt($B)Default: $5.36B

Results

Implied Equity Value / share$117.22

Current Price$116.71

Upside / Downside+0.4%

Implied EV$14.78B

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

Mult \ Net Debt	$3.36B	$4.36B	$5.36B	$6.36B	$7.36B
2.5x	$29.54	$17.10	$4.65	$-7.79	$-20.23
4.5x	$85.82	$73.38	$60.94	$48.49	$36.05
6.5x	$142.10	$129.66	$117.22	$104.78	$92.33
8.5x	$198.38	$185.94	$173.50	$161.06	$148.62
10.5x	$254.66	$242.22	$229.78	$217.34	$204.90

← Overview Financial Statements ← Companies