RGA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($216.97)
DCF	$2582034.54	+1189942.2%
Graham Number	$286.00	+31.8%
Reverse DCF	—	implied g: -7.2%
DDM	$76.63	-64.7%
EV/EBITDA	$218.36	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.80B

Near-term growth (yrs 1–5)(%)Rev: 26.6% / EPS: 216.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.57%

Computed WACC: 6.57%

Cost of equity (Re)7.05%(Rf 4.30% + β 0.50 × ERP 5.50%)

Cost of debt (Rd)6.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)71.40%

Debt weight (D/V)28.60%

Results

Intrinsic Value / share$4933489.98

Current Price$216.97

Upside / Downside+2273712.0%

Net Debt (used)$1.20B

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

WACC \ Near-term	208.6%	212.6%	216.6%	220.6%	224.6%
7.0%	$3802183.88	$4055014.14	$4321119.36	$4601015.60	$4895232.11
8.0%	$2888917.20	$3081007.00	$3283182.08	$3495834.47	$3719366.25
9.0%	$2271986.30	$2423045.11	$2582034.54	$2749262.86	$2925046.22
10.0%	$1831649.47	$1953422.64	$2081588.58	$2216395.75	$2358099.01
11.0%	$1504620.12	$1604643.77	$1709918.08	$1820647.12	$1937040.19

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $17.68

Book Value / share($)Yahoo: $205.63

Results

Graham Number$286.00

Current Price$216.97

Margin of Safety+31.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.57%

Terminal growth rate(%)

Computed WACC: 6.57%

Cost of equity (Re)7.05%(Rf 4.30% + β 0.50 × ERP 5.50%)

Cost of debt (Rd)6.81%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)71.40%

Debt weight (D/V)28.60%

Results

Current Price$216.97

Implied Near-term FCF Growth-13.5%

Historical Revenue Growth26.6%

Historical Earnings Growth216.6%

Base FCF (TTM)$1.80B

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: $3.72

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$76.63

Current Price$216.97

Upside / Downside-64.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.95B

Target EV/EBITDA multipleCurrent: 8.0×

Net Debt($B)Default: $1.20B

Results

Implied Equity Value / share$218.36

Current Price$216.97

Upside / Downside+0.6%

Implied EV$15.51B

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

Mult \ Net Debt	$1.20B	$1.20B	$1.20B	$1.20B	$1.20B
4.0x	$99.45	$99.45	$99.45	$99.45	$99.45
6.0x	$158.90	$158.90	$158.90	$158.90	$158.90
8.0x	$218.36	$218.36	$218.36	$218.36	$218.36
10.0x	$277.81	$277.81	$277.81	$277.81	$277.81
12.0x	$337.26	$337.26	$337.26	$337.26	$337.26

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