OHI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($47.35)
DCF	$225.11	+375.4%
Graham Number	$27.66	-41.6%
Reverse DCF	—	implied g: 10.4%
DDM	$55.21	+16.6%
EV/EBITDA	$48.99	+3.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $759.89M

Near-term growth (yrs 1–5)(%)Rev: 14.3% / EPS: 34.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.48%

Computed WACC: 6.48%

Cost of equity (Re)7.30%(Rf 4.30% + β 0.55 × ERP 5.50%)

Cost of debt (Rd)4.73%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)76.99%

Debt weight (D/V)23.01%

Results

Intrinsic Value / share$415.66

Current Price$47.35

Upside / Downside+777.8%

Net Debt (used)$4.27B

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

WACC \ Near-term	26.6%	30.6%	34.6%	38.6%	42.6%
7.0%	$262.04	$307.30	$358.37	$415.79	$480.16
8.0%	$203.76	$239.23	$279.25	$324.23	$374.62
9.0%	$163.86	$192.65	$225.11	$261.58	$302.42
10.0%	$134.97	$158.92	$185.91	$216.22	$250.17
11.0%	$113.17	$133.47	$156.35	$182.02	$210.76

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.94

Book Value / share($)Yahoo: $17.53

Results

Graham Number$27.66

Current Price$47.35

Margin of Safety-41.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.48%

Terminal growth rate(%)

Computed WACC: 6.48%

Cost of equity (Re)7.30%(Rf 4.30% + β 0.55 × ERP 5.50%)

Cost of debt (Rd)4.73%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)76.99%

Debt weight (D/V)23.01%

Results

Current Price$47.35

Implied Near-term FCF Growth2.2%

Historical Revenue Growth14.3%

Historical Earnings Growth34.6%

Base FCF (TTM)$759.89M

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: $2.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$55.21

Current Price$47.35

Upside / Downside+16.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.07B

Target EV/EBITDA multipleCurrent: 17.5×

Net Debt($B)Default: $4.27B

Results

Implied Equity Value / share$48.99

Current Price$47.35

Upside / Downside+3.5%

Implied EV$18.75B

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

Mult \ Net Debt	$2.27B	$3.27B	$4.27B	$5.27B	$6.27B
13.5x	$41.28	$37.90	$34.52	$31.13	$27.75
15.5x	$48.52	$45.14	$41.75	$38.37	$34.99
17.5x	$55.75	$52.37	$48.99	$45.60	$42.22
19.5x	$62.99	$59.61	$56.22	$52.84	$49.46
21.5x	$70.22	$66.84	$63.46	$60.07	$56.69

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