RLJ — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($8.15)
DCF	$9.98	+22.5%
Graham Number	$3.69	-54.8%
Reverse DCF	—	implied g: 3.6%
DDM	$12.36	+51.7%
EV/EBITDA	$10.60	+30.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $194.31M

Near-term growth (yrs 1–5)(%)Rev: -0.4% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.20%

Computed WACC: 6.20%

Cost of equity (Re)10.28%(Rf 4.30% + β 1.09 × ERP 5.50%)

Cost of debt (Rd)5.08%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)34.83%

Debt weight (D/V)65.17%

Results

Intrinsic Value / share$27.28

Current Price$8.15

Upside / Downside+234.7%

Net Debt (used)$1.90B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$10.18	$14.78	$20.14	$26.34	$33.48
8.0%	$6.12	$9.83	$14.14	$19.11	$24.84
9.0%	$3.32	$6.40	$9.98	$14.11	$18.86
10.0%	$1.25	$3.89	$6.94	$10.45	$14.49
11.0%	$-0.32	$1.96	$4.61	$7.65	$11.15

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.05

Book Value / share($)Yahoo: $12.09

Results

Graham Number$3.69

Current Price$8.15

Margin of Safety-54.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.20%

Terminal growth rate(%)

Computed WACC: 6.20%

Cost of equity (Re)10.28%(Rf 4.30% + β 1.09 × ERP 5.50%)

Cost of debt (Rd)5.08%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)34.83%

Debt weight (D/V)65.17%

Results

Current Price$8.15

Implied Near-term FCF Growth-5.1%

Historical Revenue Growth-0.4%

Historical Earnings Growth—

Base FCF (TTM)$194.31M

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: $0.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$12.36

Current Price$8.15

Upside / Downside+51.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $317.06M

Target EV/EBITDA multipleCurrent: 11.1×

Net Debt($B)Default: $1.90B

Results

Implied Equity Value / share$10.60

Current Price$8.15

Upside / Downside+30.1%

Implied EV$3.51B

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

Mult \ Net Debt	$1.90B	$1.90B	$1.90B	$1.90B	$1.90B
7.1x	$2.21	$2.21	$2.21	$2.21	$2.21
9.1x	$6.41	$6.41	$6.41	$6.41	$6.41
11.1x	$10.60	$10.60	$10.60	$10.60	$10.60
13.1x	$14.80	$14.80	$14.80	$14.80	$14.80
15.1x	$19.00	$19.00	$19.00	$19.00	$19.00

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