OMC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($85.36)
DCF	$926.64	+985.6%
Graham Number	—	—
Reverse DCF	—	implied g: -11.0%
DDM	$65.92	-22.8%
EV/EBITDA	$88.62	+3.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.50B

Near-term growth (yrs 1–5)(%)Rev: 27.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.58%

Computed WACC: 6.58%

Cost of equity (Re)8.21%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)3.43%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.44%

Debt weight (D/V)29.56%

Results

Intrinsic Value / share$1608.01

Current Price$85.36

Upside / Downside+1783.8%

Net Debt (used)$4.39B

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

WACC \ Near-term	19.9%	23.9%	27.9%	31.9%	35.9%
7.0%	$1046.82	$1229.24	$1436.32	$1670.51	$1934.42
8.0%	$828.39	$971.98	$1134.91	$1319.08	$1526.51
9.0%	$678.59	$795.60	$928.29	$1078.20	$1246.98
10.0%	$569.87	$667.62	$778.41	$903.51	$1044.29
11.0%	$487.66	$570.87	$665.12	$771.50	$891.15

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.27

Book Value / share($)Yahoo: $38.47

Results

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

Graham Number—

Current Price$85.36

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.58%

Terminal growth rate(%)

Computed WACC: 6.58%

Cost of equity (Re)8.21%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)3.43%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.44%

Debt weight (D/V)29.56%

Results

Current Price$85.36

Implied Near-term FCF Growth-16.9%

Historical Revenue Growth27.9%

Historical Earnings Growth—

Base FCF (TTM)$4.50B

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: $3.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$65.92

Current Price$85.36

Upside / Downside-22.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.79B

Target EV/EBITDA multipleCurrent: 11.4×

Net Debt($B)Default: $4.39B

Results

Implied Equity Value / share$88.62

Current Price$85.36

Upside / Downside+3.8%

Implied EV$31.89B

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

Mult \ Net Debt	$2.39B	$3.39B	$4.39B	$5.39B	$6.39B
7.4x	$59.06	$55.84	$52.61	$49.39	$46.17
9.4x	$77.06	$73.84	$70.62	$67.39	$64.17
11.4x	$95.06	$91.84	$88.62	$85.39	$82.17
13.4x	$113.06	$109.84	$106.62	$103.40	$100.17
15.4x	$131.06	$127.84	$124.62	$121.40	$118.18

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