OVV — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($52.16)
DCF	$-108.59	-308.2%
Graham Number	$68.94	+32.2%
Reverse DCF	—	—
DDM	$24.72	-52.6%
EV/EBITDA	$50.59	-3.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$1.40B

Near-term growth (yrs 1–5)(%)Rev: -6.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.48%

Computed WACC: 7.48%

Cost of equity (Re)8.31%(Rf 4.30% + β 0.73 × ERP 5.50%)

Cost of debt (Rd)7.06%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.70%

Debt weight (D/V)30.30%

Results

Intrinsic Value / share$-135.47

Current Price$52.16

Upside / Downside-359.7%

Net Debt (used)$6.10B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-109.33	$-127.09	$-147.74	$-171.64	$-199.18
8.0%	$-93.71	$-108.00	$-124.60	$-143.78	$-165.86
9.0%	$-82.89	$-94.79	$-108.59	$-124.52	$-142.82
10.0%	$-74.94	$-85.09	$-96.85	$-110.40	$-125.95
11.0%	$-68.86	$-77.68	$-87.87	$-99.62	$-113.08

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.78

Book Value / share($)Yahoo: $44.20

Results

Graham Number$68.94

Current Price$52.16

Margin of Safety+32.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.48%

Terminal growth rate(%)

Computed WACC: 7.48%

Cost of equity (Re)8.31%(Rf 4.30% + β 0.73 × ERP 5.50%)

Cost of debt (Rd)7.06%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.70%

Debt weight (D/V)30.30%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$52.16

Implied Near-term FCF Growth—

Historical Revenue Growth-6.0%

Historical Earnings Growth—

Base FCF (TTM)-$1.40B

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: $1.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$24.72

Current Price$52.16

Upside / Downside-52.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.27B

Target EV/EBITDA multipleCurrent: 4.8×

Net Debt($B)Default: $6.10B

Results

Implied Equity Value / share$50.59

Current Price$52.16

Upside / Downside-3.0%

Implied EV$20.44B

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

Mult \ Net Debt	$2.10B	$4.10B	$6.10B	$8.10B	$10.10B
0.8x	$4.38	$-2.68	$-9.73	$-16.79	$-23.85
2.8x	$34.54	$27.49	$20.43	$13.37	$6.31
4.8x	$64.71	$57.65	$50.59	$43.53	$36.47
6.8x	$94.87	$87.81	$80.75	$73.69	$66.63
8.8x	$125.03	$117.97	$110.91	$103.85	$96.80

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