PECO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($39.77)
DCF	$14475.79	+36298.8%
Graham Number	$19.08	-52.0%
Reverse DCF	—	implied g: 25.3%
DDM	$26.78	-32.7%
EV/EBITDA	$41.69	+4.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $131.49M

Near-term growth (yrs 1–5)(%)Rev: 8.6% / EPS: 153.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.18%

Computed WACC: 5.18%

Cost of equity (Re)7.42%(Rf 4.30% + β 0.57 × 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)69.83%

Debt weight (D/V)30.17%

Results

Intrinsic Value / share$45922.95

Current Price$39.77

Upside / Downside+115371.3%

Net Debt (used)$2.38B

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

WACC \ Near-term	145.3%	149.3%	153.3%	157.3%	161.3%
7.0%	$20450.93	$22173.83	$24010.87	$25967.61	$28049.83
8.0%	$15596.96	$16911.03	$18312.12	$19804.51	$21392.58
9.0%	$12312.49	$13349.93	$14456.06	$15634.25	$16887.97
10.0%	$9963.86	$10803.49	$11698.71	$12652.23	$13666.87
11.0%	$8216.09	$8908.53	$9646.80	$10433.15	$11269.89

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.89

Book Value / share($)Yahoo: $18.18

Results

Graham Number$19.08

Current Price$39.77

Margin of Safety-52.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.18%

Terminal growth rate(%)

Computed WACC: 5.18%

Cost of equity (Re)7.42%(Rf 4.30% + β 0.57 × 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)69.83%

Debt weight (D/V)30.17%

Results

Current Price$39.77

Implied Near-term FCF Growth9.1%

Historical Revenue Growth8.6%

Historical Earnings Growth153.3%

Base FCF (TTM)$131.49M

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: $1.30

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$26.78

Current Price$39.77

Upside / Downside-32.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $448.10M

Target EV/EBITDA multipleCurrent: 17.0×

Net Debt($B)Default: $2.38B

Results

Implied Equity Value / share$41.69

Current Price$39.77

Upside / Downside+4.8%

Implied EV$7.62B

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

Mult \ Net Debt	$376.71M	$1.38B	$2.38B	$3.38B	$4.38B
13.0x	$43.34	$35.39	$27.44	$19.49	$11.54
15.0x	$50.46	$42.52	$34.57	$26.62	$18.67
17.0x	$57.59	$49.64	$41.69	$33.74	$25.79
19.0x	$64.71	$56.76	$48.81	$40.86	$32.91
21.0x	$71.84	$63.89	$55.94	$47.99	$40.04

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