PII — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($59.00)
DCF	$259.78	+340.3%
Graham Number	—	—
Reverse DCF	—	implied g: -11.5%
DDM	$56.03	-5.0%
EV/EBITDA	$59.08	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $732.61M

Near-term growth (yrs 1–5)(%)Rev: 9.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.19%

Computed WACC: 9.19%

Cost of equity (Re)10.84%(Rf 4.30% + β 1.19 × ERP 5.50%)

Cost of debt (Rd)7.42%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)66.77%

Debt weight (D/V)33.23%

Results

Intrinsic Value / share$251.20

Current Price$59.00

Upside / Downside+325.8%

Net Debt (used)$1.53B

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

WACC \ Near-term	1.0%	5.0%	9.0%	13.0%	17.0%
7.0%	$268.71	$326.95	$394.38	$472.08	$561.20
8.0%	$214.18	$260.82	$314.76	$376.84	$447.97
9.0%	$176.48	$215.13	$259.78	$311.10	$369.85
10.0%	$148.88	$181.71	$219.57	$263.05	$312.77
11.0%	$127.82	$156.21	$188.92	$226.44	$269.31

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-7.95

Book Value / share($)Yahoo: $14.66

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$59.00

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.19%

Terminal growth rate(%)

Computed WACC: 9.19%

Cost of equity (Re)10.84%(Rf 4.30% + β 1.19 × ERP 5.50%)

Cost of debt (Rd)7.42%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)66.77%

Debt weight (D/V)33.23%

Results

Current Price$59.00

Implied Near-term FCF Growth-11.1%

Historical Revenue Growth9.0%

Historical Earnings Growth—

Base FCF (TTM)$732.61M

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: $2.72

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$56.03

Current Price$59.00

Upside / Downside-5.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $320.80M

Target EV/EBITDA multipleCurrent: 15.2×

Net Debt($B)Default: $1.53B

Results

Implied Equity Value / share$59.08

Current Price$59.00

Upside / Downside+0.1%

Implied EV$4.88B

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

Mult \ Net Debt	$1.53B	$1.53B	$1.53B	$1.53B	$1.53B
11.2x	$36.44	$36.44	$36.44	$36.44	$36.44
13.2x	$47.76	$47.76	$47.76	$47.76	$47.76
15.2x	$59.08	$59.08	$59.08	$59.08	$59.08
17.2x	$70.39	$70.39	$70.39	$70.39	$70.39
19.2x	$81.71	$81.71	$81.71	$81.71	$81.71

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