REED — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($2.27)
DCF	$-19.94	-976.4%
Graham Number	$2.20	-3.4%
Reverse DCF	—	—
DDM	—	—
EV/EBITDA	—	—

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$12.66M

Near-term growth (yrs 1–5)(%)Rev: 4.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.63%

Computed WACC: 5.63%

Cost of equity (Re)7.79%(Rf 4.30% + β 0.64 × 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)72.23%

Debt weight (D/V)27.77%

Results

Intrinsic Value / share$-41.11

Current Price$2.27

Upside / Downside-1907.1%

Net Debt (used)$5.88M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-20.10	$-24.07	$-28.68	$-34.01	$-40.15
8.0%	$-16.62	$-19.81	$-23.51	$-27.79	$-32.72
9.0%	$-14.20	$-16.86	$-19.94	$-23.49	$-27.58
10.0%	$-12.43	$-14.69	$-17.32	$-20.34	$-23.81
11.0%	$-11.07	$-13.04	$-15.32	$-17.94	$-20.94

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.72

Book Value / share($)Yahoo: $0.30

Results

Graham Number$2.20

Current Price$2.27

Margin of Safety-3.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.63%

Terminal growth rate(%)

Computed WACC: 5.63%

Cost of equity (Re)7.79%(Rf 4.30% + β 0.64 × 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)72.23%

Debt weight (D/V)27.77%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$2.27

Implied Near-term FCF Growth—

Historical Revenue Growth4.2%

Historical Earnings Growth—

Base FCF (TTM)-$12.66M

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$2.27

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: -$15.31M

Target EV/EBITDA multipleCurrent: -1.7×

Net Debt($B)Default: $5.88M

Results

Implied Equity Value / share$1.79

Current Price$2.27

Upside / Downside-21.5%

Implied EV$26.32M

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