ROP — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($353.93)
DCF	$385.92	+9.0%
Graham Number	$245.56	-30.6%
Reverse DCF	—	implied g: 8.5%
DDM	$74.98	-78.8%
EV/EBITDA	$353.93	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.12B

Near-term growth (yrs 1–5)(%)Rev: 9.7% / EPS: -7.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.53%

Computed WACC: 7.53%

Cost of equity (Re)9.41%(Rf 4.30% + β 0.93 × 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)79.98%

Debt weight (D/V)20.02%

Results

Intrinsic Value / share$534.76

Current Price$353.93

Upside / Downside+51.1%

Net Debt (used)$9.24B

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

WACC \ Near-term	1.7%	5.7%	9.7%	13.7%	17.7%
7.0%	$403.47	$500.18	$612.07	$740.90	$888.56
8.0%	$311.93	$389.32	$478.74	$581.59	$699.36
9.0%	$248.68	$312.76	$386.71	$471.67	$568.86
10.0%	$202.40	$256.76	$319.44	$391.36	$473.56
11.0%	$167.08	$214.07	$268.17	$330.20	$401.01

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $14.37

Book Value / share($)Yahoo: $186.51

Results

Graham Number$245.56

Current Price$353.93

Margin of Safety-30.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.53%

Terminal growth rate(%)

Computed WACC: 7.53%

Cost of equity (Re)9.41%(Rf 4.30% + β 0.93 × 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)79.98%

Debt weight (D/V)20.02%

Results

Current Price$353.93

Implied Near-term FCF Growth4.1%

Historical Revenue Growth9.7%

Historical Earnings Growth-7.3%

Base FCF (TTM)$2.12B

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: $3.64

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$74.98

Current Price$353.93

Upside / Downside-78.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.13B

Target EV/EBITDA multipleCurrent: 14.6×

Net Debt($B)Default: $9.24B

Results

Implied Equity Value / share$353.93

Current Price$353.93

Upside / Downside-0.0%

Implied EV$45.67B

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

Mult \ Net Debt	$5.24B	$7.24B	$9.24B	$11.24B	$13.24B
10.6x	$271.01	$251.58	$232.15	$212.72	$193.29
12.6x	$331.90	$312.47	$293.04	$273.61	$254.18
14.6x	$392.79	$373.36	$353.93	$334.50	$315.06
16.6x	$453.68	$434.25	$414.82	$395.39	$375.95
18.6x	$514.57	$495.14	$475.71	$456.28	$436.84

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