PAA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($21.42)
DCF	$20.43	-4.6%
Graham Number	$18.74	-12.5%
Reverse DCF	—	implied g: 5.5%
DDM	$34.40	+60.6%
EV/EBITDA	$25.96	+21.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.46B

Near-term growth (yrs 1–5)(%)Rev: -14.8% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.13%

Computed WACC: 4.13%

Cost of equity (Re)7.27%(Rf 4.30% + β 0.54 × 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)56.87%

Debt weight (D/V)43.13%

Results

Intrinsic Value / share$130.01

Current Price$21.42

Upside / Downside+507.0%

Net Debt (used)$11.13B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$20.74	$28.13	$36.72	$46.67	$58.12
8.0%	$14.24	$20.19	$27.09	$35.08	$44.26
9.0%	$9.74	$14.69	$20.43	$27.06	$34.67
10.0%	$6.43	$10.66	$15.55	$21.19	$27.66
11.0%	$3.90	$7.57	$11.82	$16.70	$22.30

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.12

Book Value / share($)Yahoo: $13.93

Results

Graham Number$18.74

Current Price$21.42

Margin of Safety-12.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.13%

Terminal growth rate(%)

Computed WACC: 4.13%

Cost of equity (Re)7.27%(Rf 4.30% + β 0.54 × 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)56.87%

Debt weight (D/V)43.13%

Results

Current Price$21.42

Implied Near-term FCF Growth-14.0%

Historical Revenue Growth-14.8%

Historical Earnings Growth—

Base FCF (TTM)$1.46B

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: $1.67

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$34.40

Current Price$21.42

Upside / Downside+60.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.33B

Target EV/EBITDA multipleCurrent: 12.6×

Net Debt($B)Default: $11.13B

Results

Implied Equity Value / share$25.96

Current Price$21.42

Upside / Downside+21.2%

Implied EV$29.45B

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

Mult \ Net Debt	$5.13B	$8.13B	$11.13B	$14.13B	$17.13B
8.6x	$21.24	$16.99	$12.74	$8.48	$4.23
10.6x	$27.86	$23.60	$19.35	$15.10	$10.85
12.6x	$34.47	$30.22	$25.96	$21.71	$17.46
14.6x	$41.08	$36.83	$32.58	$28.33	$24.07
16.6x	$47.70	$43.44	$39.19	$34.94	$30.69

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