PAG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($156.75)
DCF	$-52.16	-133.3%
Graham Number	$163.93	+4.6%
Reverse DCF	—	implied g: 27.4%
DDM	$115.36	-26.4%
EV/EBITDA	$156.80	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $303.19M

Near-term growth (yrs 1–5)(%)Rev: -3.1% / EPS: -19.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.87%

Computed WACC: 4.87%

Cost of equity (Re)9.02%(Rf 4.30% + β 0.86 × 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)53.99%

Debt weight (D/V)46.01%

Results

Intrinsic Value / share$90.46

Current Price$156.75

Upside / Downside-42.3%

Net Debt (used)$8.76B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-51.47	$-34.98	$-15.80	$6.39	$31.96
8.0%	$-65.97	$-52.70	$-37.29	$-19.48	$1.02
9.0%	$-76.02	$-64.98	$-52.16	$-37.37	$-20.37
10.0%	$-83.40	$-73.98	$-63.06	$-50.48	$-36.04
11.0%	$-89.05	$-80.86	$-71.39	$-60.49	$-47.99

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $14.12

Book Value / share($)Yahoo: $84.59

Results

Graham Number$163.93

Current Price$156.75

Margin of Safety+4.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.87%

Terminal growth rate(%)

Computed WACC: 4.87%

Cost of equity (Re)9.02%(Rf 4.30% + β 0.86 × 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)53.99%

Debt weight (D/V)46.01%

Results

Current Price$156.75

Implied Near-term FCF Growth8.9%

Historical Revenue Growth-3.1%

Historical Earnings Growth-19.1%

Base FCF (TTM)$303.19M

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: $5.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$115.36

Current Price$156.75

Upside / Downside-26.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.46B

Target EV/EBITDA multipleCurrent: 13.1×

Net Debt($B)Default: $8.76B

Results

Implied Equity Value / share$156.80

Current Price$156.75

Upside / Downside+0.0%

Implied EV$19.08B

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

Mult \ Net Debt	$4.76B	$6.76B	$8.76B	$10.76B	$12.76B
9.1x	$129.08	$98.71	$68.34	$37.97	$7.61
11.1x	$173.31	$142.94	$112.57	$82.20	$51.83
13.1x	$217.54	$187.17	$156.80	$126.43	$96.06
15.1x	$261.76	$231.40	$201.03	$170.66	$140.29
17.1x	$305.99	$275.62	$245.26	$214.89	$184.52

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