PRI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($258.24)
DCF	$1768.37	+584.8%
Graham Number	$200.86	-22.2%
Reverse DCF	—	implied g: -7.8%
DDM	$88.99	-65.5%
EV/EBITDA	$257.01	-0.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.13B

Near-term growth (yrs 1–5)(%)Rev: 8.0% / EPS: 23.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.59%

Computed WACC: 7.59%

Cost of equity (Re)9.34%(Rf 4.30% + β 0.92 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)81.22%

Debt weight (D/V)18.78%

Results

Intrinsic Value / share$2362.10

Current Price$258.24

Upside / Downside+814.7%

Net Debt (used)$1.14B

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

WACC \ Near-term	15.5%	19.5%	23.5%	27.5%	31.5%
7.0%	$1962.47	$2317.34	$2721.92	$3181.30	$3700.91
8.0%	$1558.78	$1839.05	$2158.36	$2520.70	$2930.34
9.0%	$1281.54	$1510.65	$1771.51	$2067.34	$2401.61
10.0%	$1080.01	$1272.01	$1490.47	$1738.06	$2017.67
11.0%	$927.35	$1091.30	$1277.71	$1488.85	$1727.16

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $23.32

Book Value / share($)Yahoo: $76.89

Results

Graham Number$200.86

Current Price$258.24

Margin of Safety-22.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.59%

Terminal growth rate(%)

Computed WACC: 7.59%

Cost of equity (Re)9.34%(Rf 4.30% + β 0.92 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)81.22%

Debt weight (D/V)18.78%

Results

Current Price$258.24

Implied Near-term FCF Growth-11.1%

Historical Revenue Growth8.0%

Historical Earnings Growth23.5%

Base FCF (TTM)$1.13B

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: $4.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$88.99

Current Price$258.24

Upside / Downside-65.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.08B

Target EV/EBITDA multipleCurrent: 8.7×

Net Debt($B)Default: $1.14B

Results

Implied Equity Value / share$257.01

Current Price$258.24

Upside / Downside-0.5%

Implied EV$9.31B

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

Mult \ Net Debt	$1.14B	$1.14B	$1.14B	$1.14B	$1.14B
4.7x	$121.73	$121.73	$121.73	$121.73	$121.73
6.7x	$189.37	$189.37	$189.37	$189.37	$189.37
8.7x	$257.01	$257.01	$257.01	$257.01	$257.01
10.7x	$324.65	$324.65	$324.65	$324.65	$324.65
12.7x	$392.29	$392.29	$392.29	$392.29	$392.29

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