OTIS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($93.62)
DCF	$99.06	+5.8%
Graham Number	—	—
Reverse DCF	—	implied g: 12.7%
DDM	$34.61	-63.0%
EV/EBITDA	$92.87	-0.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.59B

Near-term growth (yrs 1–5)(%)Rev: 3.3% / EPS: 13.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.40%

Computed WACC: 8.40%

Cost of equity (Re)9.87%(Rf 4.30% + β 1.01 × ERP 5.50%)

Cost of debt (Rd)2.71%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.09%

Debt weight (D/V)18.91%

Results

Intrinsic Value / share$112.46

Current Price$93.62

Upside / Downside+20.1%

Net Debt (used)$7.42B

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

WACC \ Near-term	5.5%	9.5%	13.5%	17.5%	21.5%
7.0%	$105.85	$129.70	$157.19	$188.70	$224.68
8.0%	$82.00	$101.01	$122.89	$147.95	$176.55
9.0%	$65.56	$81.23	$99.26	$119.89	$143.40
10.0%	$53.55	$66.80	$82.02	$99.42	$119.24
11.0%	$44.41	$55.82	$68.91	$83.86	$100.88

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.50

Book Value / share($)Yahoo: $-13.83

Results

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

Graham Number—

Current Price$93.62

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.40%

Terminal growth rate(%)

Computed WACC: 8.40%

Cost of equity (Re)9.87%(Rf 4.30% + β 1.01 × ERP 5.50%)

Cost of debt (Rd)2.71%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.09%

Debt weight (D/V)18.91%

Results

Current Price$93.62

Implied Near-term FCF Growth10.9%

Historical Revenue Growth3.3%

Historical Earnings Growth13.5%

Base FCF (TTM)$1.59B

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: $1.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$34.61

Current Price$93.62

Upside / Downside-63.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.55B

Target EV/EBITDA multipleCurrent: 17.1×

Net Debt($B)Default: $7.42B

Results

Implied Equity Value / share$92.87

Current Price$93.62

Upside / Downside-0.8%

Implied EV$43.51B

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

Mult \ Net Debt	$3.42B	$5.42B	$7.42B	$9.42B	$11.42B
13.1x	$76.91	$71.76	$66.62	$61.47	$56.33
15.1x	$90.03	$84.89	$79.74	$74.60	$69.45
17.1x	$103.16	$98.01	$92.87	$87.72	$82.58
19.1x	$116.28	$111.14	$105.99	$100.85	$95.70
21.1x	$129.41	$124.26	$119.12	$113.97	$108.83

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