OKE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($85.26)
DCF	$29.13	-65.8%
Graham Number	$65.99	-22.6%
Reverse DCF	—	implied g: 39.3%
DDM	$85.70	+0.5%
EV/EBITDA	$86.26	+1.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $725.37M

Near-term growth (yrs 1–5)(%)Rev: 29.5% / EPS: -1.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.66%

Computed WACC: 5.66%

Cost of equity (Re)9.14%(Rf 4.30% + β 0.88 × 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)61.90%

Debt weight (D/V)38.10%

Results

Intrinsic Value / share$135.70

Current Price$85.26

Upside / Downside+59.2%

Net Debt (used)$32.97B

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

WACC \ Near-term	21.5%	25.5%	29.5%	33.5%	37.5%
7.0%	$40.11	$55.83	$73.64	$93.75	$116.39
8.0%	$20.96	$33.31	$47.31	$63.11	$80.89
9.0%	$7.83	$17.88	$29.27	$42.12	$56.57
10.0%	$-1.70	$6.69	$16.19	$26.91	$38.94
11.0%	$-8.90	$-1.76	$6.31	$15.41	$25.64

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.42

Book Value / share($)Yahoo: $35.71

Results

Graham Number$65.99

Current Price$85.26

Margin of Safety-22.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.66%

Terminal growth rate(%)

Computed WACC: 5.66%

Cost of equity (Re)9.14%(Rf 4.30% + β 0.88 × 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)61.90%

Debt weight (D/V)38.10%

Results

Current Price$85.26

Implied Near-term FCF Growth24.2%

Historical Revenue Growth29.5%

Historical Earnings Growth-1.5%

Base FCF (TTM)$725.37M

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: $4.16

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$85.70

Current Price$85.26

Upside / Downside+0.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $7.34B

Target EV/EBITDA multipleCurrent: 11.9×

Net Debt($B)Default: $32.97B

Results

Implied Equity Value / share$86.26

Current Price$85.26

Upside / Downside+1.2%

Implied EV$87.30B

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

Mult \ Net Debt	$16.97B	$24.97B	$32.97B	$40.97B	$48.97B
7.9x	$65.07	$52.37	$39.66	$26.96	$14.26
9.9x	$88.37	$75.66	$62.96	$50.26	$37.55
11.9x	$111.66	$98.96	$86.26	$73.55	$60.85
13.9x	$134.96	$122.26	$109.55	$96.85	$84.15
15.9x	$158.26	$145.55	$132.85	$120.15	$107.45

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