RL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($354.13)
DCF	$796.93	+125.0%
Graham Number	$124.01	-65.0%
Reverse DCF	—	implied g: 11.1%
DDM	$75.19	-78.8%
EV/EBITDA	$554.57	+56.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $571.95M

Near-term growth (yrs 1–5)(%)Rev: 12.2% / EPS: 24.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.45%

Computed WACC: 11.45%

Cost of equity (Re)12.48%(Rf 4.30% + β 1.49 × ERP 5.50%)

Cost of debt (Rd)4.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)88.25%

Debt weight (D/V)11.75%

Results

Intrinsic Value / share$536.45

Current Price$354.13

Upside / Downside+51.5%

Net Debt (used)$607.90M

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

WACC \ Near-term	16.9%	20.9%	24.9%	28.9%	32.9%
7.0%	$886.32	$1044.85	$1225.34	$1430.00	$1661.22
8.0%	$703.03	$828.11	$970.43	$1131.72	$1313.84
9.0%	$577.20	$679.36	$795.52	$927.09	$1075.58
10.0%	$485.78	$571.31	$668.50	$778.53	$902.63
11.0%	$416.57	$489.54	$572.40	$666.14	$771.83

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $14.34

Book Value / share($)Yahoo: $47.66

Results

Graham Number$124.01

Current Price$354.13

Margin of Safety-65.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.45%

Terminal growth rate(%)

Computed WACC: 11.45%

Cost of equity (Re)12.48%(Rf 4.30% + β 1.49 × ERP 5.50%)

Cost of debt (Rd)4.68%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)88.25%

Debt weight (D/V)11.75%

Results

Current Price$354.13

Implied Near-term FCF Growth17.4%

Historical Revenue Growth12.2%

Historical Earnings Growth24.9%

Base FCF (TTM)$571.95M

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: $3.65

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$75.19

Current Price$354.13

Upside / Downside-78.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.37B

Target EV/EBITDA multipleCurrent: 16.1×

Net Debt($B)Default: $607.90M

Results

Implied Equity Value / share$554.57

Current Price$354.13

Upside / Downside+56.6%

Implied EV$22.04B

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

Mult \ Net Debt	-$1.39B	-$392.10M	$607.90M	$1.61B	$2.61B
12.1x	$464.83	$438.96	$413.09	$387.22	$361.35
14.1x	$535.57	$509.70	$483.83	$457.96	$432.09
16.1x	$606.31	$580.44	$554.57	$528.70	$502.83
18.1x	$677.06	$651.19	$625.32	$599.45	$573.58
20.1x	$747.80	$721.93	$696.06	$670.19	$644.32

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