PEG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($84.50)
DCF	$-56.25	-166.6%
Graham Number	$56.50	-33.1%
Reverse DCF	—	—
DDM	$55.21	-34.7%
EV/EBITDA	$84.43	-0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$105.00M

Near-term growth (yrs 1–5)(%)Rev: 18.3% / EPS: 10.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.21%

Computed WACC: 6.21%

Cost of equity (Re)7.69%(Rf 4.30% + β 0.62 × ERP 5.50%)

Cost of debt (Rd)4.60%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)63.51%

Debt weight (D/V)36.49%

Results

Intrinsic Value / share$-63.16

Current Price$84.50

Upside / Downside-174.7%

Net Debt (used)$24.10B

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

WACC \ Near-term	10.3%	14.3%	18.3%	22.3%	26.3%
7.0%	$-56.91	$-58.50	$-60.32	$-62.41	$-64.77
8.0%	$-55.21	$-56.47	$-57.92	$-59.57	$-61.44
9.0%	$-54.04	$-55.08	$-56.27	$-57.62	$-59.15
10.0%	$-53.19	$-54.06	$-55.06	$-56.20	$-57.48
11.0%	$-52.55	$-53.29	$-54.15	$-55.12	$-56.22

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.16

Book Value / share($)Yahoo: $34.10

Results

Graham Number$56.50

Current Price$84.50

Margin of Safety-33.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.21%

Terminal growth rate(%)

Computed WACC: 6.21%

Cost of equity (Re)7.69%(Rf 4.30% + β 0.62 × ERP 5.50%)

Cost of debt (Rd)4.60%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)63.51%

Debt weight (D/V)36.49%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$84.50

Implied Near-term FCF Growth—

Historical Revenue Growth18.3%

Historical Earnings Growth10.5%

Base FCF (TTM)-$105.00M

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: $2.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$55.21

Current Price$84.50

Upside / Downside-34.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.50B

Target EV/EBITDA multipleCurrent: 14.7×

Net Debt($B)Default: $24.10B

Results

Implied Equity Value / share$84.43

Current Price$84.50

Upside / Downside-0.1%

Implied EV$66.24B

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

Mult \ Net Debt	$12.10B	$18.10B	$24.10B	$30.10B	$36.10B
10.7x	$72.38	$60.35	$48.33	$36.31	$24.29
12.7x	$90.42	$78.40	$66.38	$54.36	$42.34
14.7x	$108.47	$96.45	$84.43	$72.41	$60.39
16.7x	$126.51	$114.49	$102.47	$90.45	$78.43
18.7x	$144.56	$132.54	$120.52	$108.50	$96.48

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