PSA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($310.94)
DCF	$181.16	-41.7%
Graham Number	$75.26	-75.8%
Reverse DCF	—	implied g: 12.5%
DDM	$247.20	-20.5%
EV/EBITDA	$336.26	+8.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.38B

Near-term growth (yrs 1–5)(%)Rev: 3.3% / EPS: -19.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.48%

Computed WACC: 8.48%

Cost of equity (Re)9.61%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)3.11%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)84.18%

Debt weight (D/V)15.82%

Results

Intrinsic Value / share$202.08

Current Price$310.94

Upside / Downside-35.0%

Net Debt (used)$9.94B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$183.21	$231.70	$288.12	$353.42	$428.63
8.0%	$140.53	$179.57	$224.91	$277.32	$337.61
9.0%	$110.96	$143.47	$181.16	$224.68	$274.68
10.0%	$89.26	$116.98	$149.10	$186.12	$228.60
11.0%	$72.64	$96.73	$124.59	$156.66	$193.43

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $9.02

Book Value / share($)Yahoo: $27.91

Results

Graham Number$75.26

Current Price$310.94

Margin of Safety-75.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.48%

Terminal growth rate(%)

Computed WACC: 8.48%

Cost of equity (Re)9.61%(Rf 4.30% + β 0.96 × ERP 5.50%)

Cost of debt (Rd)3.11%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)84.18%

Debt weight (D/V)15.82%

Results

Current Price$310.94

Implied Near-term FCF Growth10.9%

Historical Revenue Growth3.3%

Historical Earnings Growth-19.3%

Base FCF (TTM)$2.38B

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: $12.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$247.20

Current Price$310.94

Upside / Downside-20.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.41B

Target EV/EBITDA multipleCurrent: 20.2×

Net Debt($B)Default: $9.94B

Results

Implied Equity Value / share$336.26

Current Price$310.94

Upside / Downside+8.1%

Implied EV$68.95B

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

Mult \ Net Debt	$5.94B	$7.94B	$9.94B	$11.94B	$13.94B
16.2x	$281.41	$270.02	$258.62	$247.22	$235.83
18.2x	$320.23	$308.84	$297.44	$286.05	$274.65
20.2x	$359.06	$347.66	$336.26	$324.87	$313.47
22.2x	$397.88	$386.48	$375.09	$363.69	$352.29
24.2x	$436.70	$425.30	$413.91	$402.51	$391.12

← Overview Financial Statements ← Companies