PFE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($27.65)
DCF	$31.96	+15.6%
Graham Number	$21.57	-22.0%
Reverse DCF	—	implied g: 3.1%
DDM	$35.43	+28.1%
EV/EBITDA	$27.71	+0.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $13.43B

Near-term growth (yrs 1–5)(%)Rev: -1.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.66%

Computed WACC: 5.66%

Cost of equity (Re)6.57%(Rf 4.30% + β 0.41 × ERP 5.50%)

Cost of debt (Rd)4.49%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.92%

Debt weight (D/V)30.08%

Results

Intrinsic Value / share$76.34

Current Price$27.65

Upside / Downside+176.1%

Net Debt (used)$54.05B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$32.32	$40.78	$50.62	$62.01	$75.12
8.0%	$24.88	$31.68	$39.59	$48.73	$59.25
9.0%	$19.72	$25.39	$31.96	$39.55	$48.27
10.0%	$15.93	$20.77	$26.37	$32.83	$40.24
11.0%	$13.03	$17.24	$22.10	$27.69	$34.10

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.36

Book Value / share($)Yahoo: $15.21

Results

Graham Number$21.57

Current Price$27.65

Margin of Safety-22.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.66%

Terminal growth rate(%)

Computed WACC: 5.66%

Cost of equity (Re)6.57%(Rf 4.30% + β 0.41 × ERP 5.50%)

Cost of debt (Rd)4.49%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.92%

Debt weight (D/V)30.08%

Results

Current Price$27.65

Implied Near-term FCF Growth-7.6%

Historical Revenue Growth-1.2%

Historical Earnings Growth—

Base FCF (TTM)$13.43B

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: $1.72

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$35.43

Current Price$27.65

Upside / Downside+28.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $25.72B

Target EV/EBITDA multipleCurrent: 8.2×

Net Debt($B)Default: $54.05B

Results

Implied Equity Value / share$27.71

Current Price$27.65

Upside / Downside+0.2%

Implied EV$211.58B

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

Mult \ Net Debt	$26.05B	$40.05B	$54.05B	$68.05B	$82.05B
4.2x	$14.54	$12.08	$9.61	$7.15	$4.69
6.2x	$23.58	$21.12	$18.66	$16.20	$13.74
8.2x	$32.63	$30.17	$27.71	$25.24	$22.78
10.2x	$41.68	$39.22	$36.75	$34.29	$31.83
12.2x	$50.72	$48.26	$45.80	$43.34	$40.87

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