RLI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($62.78)
DCF	$63619.93	+101237.9%
Graham Number	$43.62	-30.5%
Reverse DCF	—	implied g: -16.7%
DDM	$13.18	-79.0%
EV/EBITDA	$62.78	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.16B

Near-term growth (yrs 1–5)(%)Rev: 6.1% / EPS: 124.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.73%

Computed WACC: 6.73%

Cost of equity (Re)6.79%(Rf 4.30% + β 0.45 × ERP 5.50%)

Cost of debt (Rd)4.67%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.05%

Debt weight (D/V)1.95%

Results

Intrinsic Value / share$113723.23

Current Price$62.78

Upside / Downside+181045.6%

Net Debt (used)-$57.38M

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

WACC \ Near-term	116.4%	120.4%	124.4%	128.4%	132.4%
7.0%	$87567.28	$95951.75	$104966.82	$114647.41	$125029.72
8.0%	$67009.72	$73423.03	$80318.54	$87722.96	$95663.96
9.0%	$53082.31	$58160.28	$63619.93	$69482.40	$75769.59
10.0%	$43109.74	$47231.64	$51663.25	$56421.73	$61524.83
11.0%	$35677.67	$39087.12	$42752.67	$46688.48	$50909.25

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.37

Book Value / share($)Yahoo: $19.35

Results

Graham Number$43.62

Current Price$62.78

Margin of Safety-30.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.73%

Terminal growth rate(%)

Computed WACC: 6.73%

Cost of equity (Re)6.79%(Rf 4.30% + β 0.45 × ERP 5.50%)

Cost of debt (Rd)4.67%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)98.05%

Debt weight (D/V)1.95%

Results

Current Price$62.78

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth6.1%

Historical Earnings Growth124.4%

Base FCF (TTM)$1.16B

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: $0.64

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$13.18

Current Price$62.78

Upside / Downside-79.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $523.39M

Target EV/EBITDA multipleCurrent: 10.9×

Net Debt($B)Default: -$57.38M

Results

Implied Equity Value / share$62.78

Current Price$62.78

Upside / Downside-0.0%

Implied EV$5.71B

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

Mult \ Net Debt	-$2.06B	-$1.06B	-$57.38M	$942.62M	$1.94B
6.9x	$61.76	$50.88	$40.00	$29.12	$18.25
8.9x	$73.15	$62.27	$51.39	$40.51	$29.63
10.9x	$84.54	$73.66	$62.78	$51.90	$41.02
12.9x	$95.93	$85.05	$74.17	$63.29	$52.41
14.9x	$107.31	$96.43	$85.56	$74.68	$63.80

← Overview Financial Statements ← Companies