RBC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($584.89)
DCF	$215.33	-63.2%
Graham Number	$140.61	-76.0%
Reverse DCF	—	implied g: 33.6%
DDM	—	—
EV/EBITDA	$575.92	-1.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $220.35M

Near-term growth (yrs 1–5)(%)Rev: 17.0% / EPS: 17.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.12%

Computed WACC: 12.12%

Cost of equity (Re)12.56%(Rf 4.30% + β 1.50 × ERP 5.50%)

Cost of debt (Rd)5.67%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)94.60%

Debt weight (D/V)5.40%

Results

Intrinsic Value / share$126.78

Current Price$584.89

Upside / Downside-78.3%

Net Debt (used)$948.00M

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

WACC \ Near-term	9.0%	13.0%	17.0%	21.0%	25.0%
7.0%	$233.42	$282.47	$338.76	$403.08	$476.28
8.0%	$182.02	$220.97	$265.64	$316.65	$374.64
9.0%	$146.63	$178.65	$215.33	$257.19	$304.74
10.0%	$120.83	$147.81	$178.69	$213.89	$253.86
11.0%	$101.23	$124.39	$150.87	$181.04	$215.27

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $8.52

Book Value / share($)Yahoo: $103.14

Results

Graham Number$140.61

Current Price$584.89

Margin of Safety-76.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.12%

Terminal growth rate(%)

Computed WACC: 12.12%

Cost of equity (Re)12.56%(Rf 4.30% + β 1.50 × ERP 5.50%)

Cost of debt (Rd)5.67%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)94.60%

Debt weight (D/V)5.40%

Results

Current Price$584.89

Implied Near-term FCF Growth43.4%

Historical Revenue Growth17.0%

Historical Earnings Growth17.0%

Base FCF (TTM)$220.35M

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$584.89

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $537.30M

Target EV/EBITDA multipleCurrent: 35.7×

Net Debt($B)Default: $948.00M

Results

Implied Equity Value / share$575.92

Current Price$584.89

Upside / Downside-1.5%

Implied EV$19.16B

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

Mult \ Net Debt	-$1.05B	-$52.00M	$948.00M	$1.95B	$2.95B
31.7x	$571.20	$539.57	$507.95	$476.32	$444.69
33.7x	$605.19	$573.56	$541.93	$510.31	$478.68
35.7x	$639.17	$607.55	$575.92	$544.29	$512.67
37.7x	$673.16	$641.53	$609.91	$578.28	$546.65
39.7x	$707.14	$675.52	$643.89	$612.26	$580.64

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