PRU — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($99.95)
DCF	$2804.41	+2705.8%
Graham Number	$145.84	+45.9%
Reverse DCF	—	implied g: -20.0%
DDM	$112.27	+12.3%
EV/EBITDA	$108.98	+9.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $12.62B

Near-term growth (yrs 1–5)(%)Rev: 31.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.19%

Computed WACC: 4.19%

Cost of equity (Re)9.53%(Rf 4.30% + β 0.95 × 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)43.99%

Debt weight (D/V)56.01%

Results

Intrinsic Value / share$12872.45

Current Price$99.95

Upside / Downside+12778.9%

Net Debt (used)$3.30B

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

WACC \ Near-term	23.2%	27.2%	31.2%	35.2%	39.2%
7.0%	$3198.37	$3736.66	$4345.88	$5032.89	$5804.96
8.0%	$2529.86	$2952.69	$3431.01	$3970.17	$4575.85
9.0%	$2071.84	$2415.66	$2804.41	$3242.42	$3734.27
10.0%	$1739.78	$2026.40	$2350.32	$2715.12	$3124.58
11.0%	$1488.96	$1732.45	$2007.48	$2317.07	$2664.42

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.14

Book Value / share($)Yahoo: $93.23

Results

Graham Number$145.84

Current Price$99.95

Margin of Safety+45.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.19%

Terminal growth rate(%)

Computed WACC: 4.19%

Cost of equity (Re)9.53%(Rf 4.30% + β 0.95 × 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)43.99%

Debt weight (D/V)56.01%

Results

Current Price$99.95

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth31.2%

Historical Earnings Growth—

Base FCF (TTM)$12.62B

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: $5.45

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$112.27

Current Price$99.95

Upside / Downside+12.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.24B

Target EV/EBITDA multipleCurrent: 7.9×

Net Debt($B)Default: $3.30B

Results

Implied Equity Value / share$108.98

Current Price$99.95

Upside / Downside+9.0%

Implied EV$41.22B

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

Mult \ Net Debt	$1.30B	$2.30B	$3.30B	$4.30B	$5.30B
3.9x	$54.46	$51.58	$48.71	$45.84	$42.96
5.9x	$84.59	$81.72	$78.84	$75.97	$73.10
7.9x	$114.72	$111.85	$108.98	$106.10	$103.23
9.9x	$144.85	$141.98	$139.11	$136.23	$133.36
11.9x	$174.99	$172.11	$169.24	$166.37	$163.49

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