RGCO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($22.11)
DCF	$0.01	-100.0%
Graham Number	$17.78	-19.6%
Reverse DCF	—	implied g: 27.1%
DDM	$17.30	-21.7%
EV/EBITDA	$22.11	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $6.17M

Near-term growth (yrs 1–5)(%)Rev: 10.9% / EPS: -7.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.76%

Computed WACC: 5.76%

Cost of equity (Re)7.18%(Rf 4.30% + β 0.52 × ERP 5.50%)

Cost of debt (Rd)4.63%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)59.54%

Debt weight (D/V)40.46%

Results

Intrinsic Value / share$15.83

Current Price$22.11

Upside / Downside-28.4%

Net Debt (used)$152.81M

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

WACC \ Near-term	2.9%	6.9%	10.9%	14.9%	18.9%
7.0%	$0.64	$3.63	$7.08	$11.04	$15.58
8.0%	$-2.23	$0.15	$2.91	$6.07	$9.68
9.0%	$-4.22	$-2.24	$0.03	$2.64	$5.62
10.0%	$-5.67	$-4.00	$-2.07	$0.13	$2.65
11.0%	$-6.77	$-5.33	$-3.67	$-1.77	$0.39

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.25

Book Value / share($)Yahoo: $11.24

Results

Graham Number$17.78

Current Price$22.11

Margin of Safety-19.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.76%

Terminal growth rate(%)

Computed WACC: 5.76%

Cost of equity (Re)7.18%(Rf 4.30% + β 0.52 × ERP 5.50%)

Cost of debt (Rd)4.63%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)59.54%

Debt weight (D/V)40.46%

Results

Current Price$22.11

Implied Near-term FCF Growth13.9%

Historical Revenue Growth10.9%

Historical Earnings Growth-7.8%

Base FCF (TTM)$6.17M

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: $0.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$17.30

Current Price$22.11

Upside / Downside-21.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $29.91M

Target EV/EBITDA multipleCurrent: 12.8×

Net Debt($B)Default: $152.81M

Results

Implied Equity Value / share$22.11

Current Price$22.11

Upside / Downside+0.0%

Implied EV$382.64M

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

Mult \ Net Debt	-$1.85B	-$847.19M	$152.81M	$1.15B	$2.15B
8.8x	$203.01	$106.81	$10.60	$-85.60	$-181.81
10.8x	$208.77	$112.56	$16.36	$-79.85	$-176.05
12.8x	$214.52	$118.32	$22.11	$-74.09	$-170.30
14.8x	$220.27	$124.07	$27.86	$-68.34	$-164.54
16.8x	$226.03	$129.82	$33.62	$-62.59	$-158.79

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