RMD — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($257.39)
DCF	$300.72	+16.8%
Graham Number	$99.40	-61.4%
Reverse DCF	—	implied g: 11.8%
DDM	$49.44	-80.8%
EV/EBITDA	$257.39	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.42B

Near-term growth (yrs 1–5)(%)Rev: 11.0% / EPS: 14.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.92%

Computed WACC: 8.92%

Cost of equity (Re)9.12%(Rf 4.30% + β 0.88 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)97.79%

Debt weight (D/V)2.21%

Results

Intrinsic Value / share$304.29

Current Price$257.39

Upside / Downside+18.2%

Net Debt (used)-$569.35M

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

WACC \ Near-term	6.5%	10.5%	14.5%	18.5%	22.5%
7.0%	$318.19	$377.77	$446.33	$524.86	$614.44
8.0%	$257.84	$305.27	$359.81	$422.22	$493.36
9.0%	$216.24	$255.32	$300.21	$351.55	$410.00
10.0%	$185.87	$218.88	$256.76	$300.03	$349.26
11.0%	$162.77	$191.17	$223.72	$260.88	$303.13

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.12

Book Value / share($)Yahoo: $43.39

Results

Graham Number$99.40

Current Price$257.39

Margin of Safety-61.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.92%

Terminal growth rate(%)

Computed WACC: 8.92%

Cost of equity (Re)9.12%(Rf 4.30% + β 0.88 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)97.79%

Debt weight (D/V)2.21%

Results

Current Price$257.39

Implied Near-term FCF Growth11.5%

Historical Revenue Growth11.0%

Historical Earnings Growth14.5%

Base FCF (TTM)$1.42B

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: $2.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$49.44

Current Price$257.39

Upside / Downside-80.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.02B

Target EV/EBITDA multipleCurrent: 18.2×

Net Debt($B)Default: -$569.35M

Results

Implied Equity Value / share$257.39

Current Price$257.39

Upside / Downside+0.0%

Implied EV$36.93B

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

Mult \ Net Debt	-$2.57B	-$1.57B	-$569.35M	$430.65M	$1.43B
14.2x	$215.52	$208.66	$201.79	$194.93	$188.06
16.2x	$243.32	$236.46	$229.59	$222.73	$215.86
18.2x	$271.12	$264.26	$257.39	$250.53	$243.66
20.2x	$298.92	$292.06	$285.19	$278.33	$271.46
22.2x	$326.72	$319.86	$312.99	$306.13	$299.27

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