PPL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($38.73)
DCF	$-389.80	-1106.5%
Graham Number	$26.62	-31.3%
Reverse DCF	—	—
DDM	$23.48	-39.4%
EV/EBITDA	$38.98	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$1.33B

Near-term growth (yrs 1–5)(%)Rev: 2.8% / EPS: 49.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.29%

Computed WACC: 6.29%

Cost of equity (Re)8.09%(Rf 4.30% + β 0.69 × ERP 5.50%)

Cost of debt (Rd)4.57%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)59.86%

Debt weight (D/V)40.14%

Results

Intrinsic Value / share$-735.40

Current Price$38.73

Upside / Downside-1998.8%

Net Debt (used)$18.45B

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

WACC \ Near-term	41.9%	45.9%	49.9%	53.9%	57.9%
7.0%	$-465.92	$-530.73	$-602.99	$-683.32	$-772.39
8.0%	$-369.26	$-419.68	$-475.88	$-538.35	$-607.59
9.0%	$-303.31	$-343.92	$-389.17	$-439.46	$-495.19
10.0%	$-255.72	$-289.25	$-326.60	$-368.11	$-414.09
11.0%	$-219.95	$-248.16	$-279.59	$-314.50	$-353.17

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.59

Book Value / share($)Yahoo: $19.81

Results

Graham Number$26.62

Current Price$38.73

Margin of Safety-31.3%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.29%

Terminal growth rate(%)

Computed WACC: 6.29%

Cost of equity (Re)8.09%(Rf 4.30% + β 0.69 × ERP 5.50%)

Cost of debt (Rd)4.57%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)59.86%

Debt weight (D/V)40.14%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$38.73

Implied Near-term FCF Growth—

Historical Revenue Growth2.8%

Historical Earnings Growth49.9%

Base FCF (TTM)-$1.33B

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: $1.14

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$23.48

Current Price$38.73

Upside / Downside-39.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.54B

Target EV/EBITDA multipleCurrent: 13.5×

Net Debt($B)Default: $18.45B

Results

Implied Equity Value / share$38.98

Current Price$38.73

Upside / Downside+0.6%

Implied EV$47.73B

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

Mult \ Net Debt	$8.45B	$13.45B	$18.45B	$23.45B	$28.45B
9.5x	$33.41	$26.76	$20.10	$13.45	$6.79
11.5x	$42.85	$36.20	$29.54	$22.89	$16.23
13.5x	$52.29	$45.63	$38.98	$32.32	$25.67
15.5x	$61.73	$55.07	$48.42	$41.76	$35.11
17.5x	$71.16	$64.51	$57.85	$51.20	$44.54

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