PEP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($169.74)
DCF	$2860.33	+1585.1%
Graham Number	$44.85	-73.6%
Reverse DCF	—	implied g: 16.1%
DDM	$117.21	-30.9%
EV/EBITDA	$169.84	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $8.23B

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: 67.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.74%

Computed WACC: 5.74%

Cost of equity (Re)6.59%(Rf 4.30% + β 0.42 × ERP 5.50%)

Cost of debt (Rd)2.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.40%

Debt weight (D/V)18.60%

Results

Intrinsic Value / share$6924.07

Current Price$169.74

Upside / Downside+3979.2%

Net Debt (used)$43.50B

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

WACC \ Near-term	59.5%	63.5%	67.5%	71.5%	75.5%
7.0%	$3627.78	$4106.31	$4633.79	$5213.89	$5850.45
8.0%	$2803.63	$3173.59	$3581.34	$4029.73	$4521.71
9.0%	$2242.78	$2538.88	$2865.20	$3223.98	$3617.61
10.0%	$1839.20	$2082.18	$2349.91	$2644.25	$2967.14
11.0%	$1536.82	$1740.01	$1963.88	$2209.95	$2479.87

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.99

Book Value / share($)Yahoo: $14.93

Results

Graham Number$44.85

Current Price$169.74

Margin of Safety-73.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.74%

Terminal growth rate(%)

Computed WACC: 5.74%

Cost of equity (Re)6.59%(Rf 4.30% + β 0.42 × ERP 5.50%)

Cost of debt (Rd)2.56%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.40%

Debt weight (D/V)18.60%

Results

Current Price$169.74

Implied Near-term FCF Growth4.1%

Historical Revenue Growth5.6%

Historical Earnings Growth67.5%

Base FCF (TTM)$8.23B

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: $5.69

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$117.21

Current Price$169.74

Upside / Downside-30.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $18.17B

Target EV/EBITDA multipleCurrent: 15.2×

Net Debt($B)Default: $43.50B

Results

Implied Equity Value / share$169.84

Current Price$169.74

Upside / Downside+0.1%

Implied EV$275.61B

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

Mult \ Net Debt	$21.50B	$32.50B	$43.50B	$54.50B	$65.50B
11.2x	$132.74	$124.70	$116.65	$108.60	$100.55
13.2x	$159.34	$151.29	$143.24	$135.19	$127.15
15.2x	$185.94	$177.89	$169.84	$161.79	$153.74
17.2x	$212.53	$204.48	$196.44	$188.39	$180.34
19.2x	$239.13	$231.08	$223.03	$214.98	$206.93

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