R — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($215.08)
DCF	$120.06	-44.2%
Graham Number	$144.47	-32.8%
Reverse DCF	—	implied g: 9.3%
DDM	$72.92	-66.1%
EV/EBITDA	$215.08	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $752.75M

Near-term growth (yrs 1–5)(%)Rev: -0.4% / EPS: 4.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.80%

Computed WACC: 6.80%

Cost of equity (Re)9.28%(Rf 4.30% + β 0.91 × ERP 5.50%)

Cost of debt (Rd)5.54%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)49.42%

Debt weight (D/V)50.58%

Results

Intrinsic Value / share$293.63

Current Price$215.08

Upside / Downside+36.5%

Net Debt (used)$8.48B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$122.94	$191.30	$270.83	$362.89	$468.91
8.0%	$62.78	$117.81	$181.72	$255.60	$340.59
9.0%	$21.10	$66.91	$120.06	$181.40	$251.88
10.0%	$-9.51	$29.58	$74.85	$127.04	$186.93
11.0%	$-32.93	$1.03	$40.30	$85.51	$137.35

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $11.98

Book Value / share($)Yahoo: $77.43

Results

Graham Number$144.47

Current Price$215.08

Margin of Safety-32.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.80%

Terminal growth rate(%)

Computed WACC: 6.80%

Cost of equity (Re)9.28%(Rf 4.30% + β 0.91 × ERP 5.50%)

Cost of debt (Rd)5.54%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)49.42%

Debt weight (D/V)50.58%

Results

Current Price$215.08

Implied Near-term FCF Growth2.3%

Historical Revenue Growth-0.4%

Historical Earnings Growth4.5%

Base FCF (TTM)$752.75M

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: $3.54

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$72.92

Current Price$215.08

Upside / Downside-66.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.80B

Target EV/EBITDA multipleCurrent: 6.0×

Net Debt($B)Default: $8.48B

Results

Implied Equity Value / share$215.08

Current Price$215.08

Upside / Downside-0.0%

Implied EV$16.96B

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

Mult \ Net Debt	$4.48B	$6.48B	$8.48B	$10.48B	$12.48B
2.0x	$31.95	$-18.77	$-69.50	$-120.23	$-170.95
4.0x	$174.24	$123.51	$72.79	$22.06	$-28.66
6.0x	$316.53	$265.80	$215.08	$164.35	$113.62
8.0x	$458.82	$408.09	$357.36	$306.64	$255.91
10.0x	$601.10	$550.38	$499.65	$448.92	$398.20

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