PCG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($19.00)
DCF	$-54.85	-388.7%
Graham Number	$19.34	+1.8%
Reverse DCF	—	—
DDM	$4.12	-78.3%
EV/EBITDA	$19.83	+4.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$3.41B

Near-term growth (yrs 1–5)(%)Rev: 2.6% / EPS: -3.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 2.58%

Computed WACC: 2.58%

Cost of equity (Re)6.36%(Rf 4.30% + β 0.37 × 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)40.51%

Debt weight (D/V)59.49%

Results

Intrinsic Value / share$-2271.86

Current Price$19.00

Upside / Downside-12057.2%

Net Debt (used)$60.62B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-55.08	$-60.64	$-67.11	$-74.60	$-83.23
8.0%	$-50.19	$-54.66	$-59.86	$-65.87	$-72.79
9.0%	$-46.80	$-50.52	$-54.85	$-59.84	$-65.57
10.0%	$-44.31	$-47.49	$-51.17	$-55.42	$-60.29
11.0%	$-42.40	$-45.16	$-48.36	$-52.04	$-56.25

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.18

Book Value / share($)Yahoo: $14.09

Results

Graham Number$19.34

Current Price$19.00

Margin of Safety+1.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 2.58%

Terminal growth rate(%)

Computed WACC: 2.58%

Cost of equity (Re)6.36%(Rf 4.30% + β 0.37 × 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)40.51%

Debt weight (D/V)59.49%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$19.00

Implied Near-term FCF Growth—

Historical Revenue Growth2.6%

Historical Earnings Growth-3.3%

Base FCF (TTM)-$3.41B

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: $0.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$4.12

Current Price$19.00

Upside / Downside-78.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $9.98B

Target EV/EBITDA multipleCurrent: 10.4×

Net Debt($B)Default: $60.62B

Results

Implied Equity Value / share$19.83

Current Price$19.00

Upside / Downside+4.4%

Implied EV$104.21B

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

Mult \ Net Debt	$30.62B	$45.62B	$60.62B	$75.62B	$90.62B
6.4x	$15.32	$8.50	$1.67	$-5.15	$-11.98
8.4x	$24.40	$17.58	$10.75	$3.93	$-2.90
10.4x	$33.48	$26.66	$19.83	$13.01	$6.18
12.4x	$42.56	$35.74	$28.91	$22.09	$15.26
14.4x	$51.64	$44.82	$37.99	$31.17	$24.34

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