QTWO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($50.90)
DCF	$170069951172551147520.00	+334125640810513039360.0%
Graham Number	$13.78	-72.9%
Reverse DCF	—	implied g: 3.4%
DDM	—	—
EV/EBITDA	$50.24	-1.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $192.85M

Near-term growth (yrs 1–5)(%)Rev: 13.8% / EPS: 10802.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.20%

Computed WACC: 11.20%

Cost of equity (Re)12.35%(Rf 4.30% + β 1.46 × ERP 5.50%)

Cost of debt (Rd)0.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.17%

Debt weight (D/V)9.83%

Results

Intrinsic Value / share$106187790837115895808.00

Current Price$50.90

Upside / Downside+208620414218302357504.0%

Net Debt (used)-$86.58M

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

WACC \ Near-term	10794.3%	10798.3%	10802.3%	10806.3%	10810.3%
7.0%	$289026813547502600192.00	$289557805226176184320.00	$290089577036264144896.00	$290622129837075922944.00	$291155464488551579648.00
8.0%	$217524750564068556800.00	$217924380726534668288.00	$218324598024461484032.00	$218725403104574636032.00	$219126796614074564608.00
9.0%	$169439189502080090112.00	$169750478266477051904.00	$170062224375412162560.00	$170374428332647317504.00	$170687090642314133504.00
10.0%	$135285366914231009280.00	$135533909266395643904.00	$135782816776253898752.00	$136032089846024503296.00	$136281728878221377536.00
11.0%	$110052796839714996224.00	$110254982646005334016.00	$110457465503088279552.00	$110660245738163257344.00	$110863323678669848576.00

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.80

Book Value / share($)Yahoo: $10.55

Results

Graham Number$13.78

Current Price$50.90

Margin of Safety-72.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.20%

Terminal growth rate(%)

Computed WACC: 11.20%

Cost of equity (Re)12.35%(Rf 4.30% + β 1.46 × ERP 5.50%)

Cost of debt (Rd)0.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.17%

Debt weight (D/V)9.83%

Results

Current Price$50.90

Implied Near-term FCF Growth8.7%

Historical Revenue Growth13.8%

Historical Earnings Growth10802.3%

Base FCF (TTM)$192.85M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$50.90

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $74.24M

Target EV/EBITDA multipleCurrent: 41.1×

Net Debt($B)Default: -$86.58M

Results

Implied Equity Value / share$50.24

Current Price$50.90

Upside / Downside-1.3%

Implied EV$3.05B

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

Mult \ Net Debt	-$2.09B	-$1.09B	-$86.58M	$913.42M	$1.91B
37.1x	$77.53	$61.51	$45.48	$29.46	$13.43
39.1x	$79.91	$63.89	$47.86	$31.84	$15.81
41.1x	$82.29	$66.26	$50.24	$34.22	$18.19
43.1x	$84.67	$68.64	$52.62	$36.59	$20.57
45.1x	$87.05	$71.02	$55.00	$38.97	$22.95

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