ROST — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($202.30)
DCF	$108.74	-46.2%
Graham Number	$51.12	-74.7%
Reverse DCF	—	implied g: 21.0%
DDM	$33.37	-83.5%
EV/EBITDA	$202.30	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.51B

Near-term growth (yrs 1–5)(%)Rev: 10.4% / EPS: 6.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.98%

Computed WACC: 8.98%

Cost of equity (Re)9.69%(Rf 4.30% + β 0.98 × 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)92.69%

Debt weight (D/V)7.31%

Results

Intrinsic Value / share$109.11

Current Price$202.30

Upside / Downside-46.1%

Net Debt (used)$1.13B

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

WACC \ Near-term	2.4%	6.4%	10.4%	14.4%	18.4%
7.0%	$113.10	$135.85	$162.15	$192.40	$227.06
8.0%	$91.35	$109.54	$130.55	$154.68	$182.31
9.0%	$76.33	$91.38	$108.74	$128.67	$151.45
10.0%	$65.34	$78.10	$92.81	$109.67	$128.92
11.0%	$56.96	$67.99	$80.67	$95.20	$111.78

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.39

Book Value / share($)Yahoo: $18.18

Results

Graham Number$51.12

Current Price$202.30

Margin of Safety-74.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.98%

Terminal growth rate(%)

Computed WACC: 8.98%

Cost of equity (Re)9.69%(Rf 4.30% + β 0.98 × 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)92.69%

Debt weight (D/V)7.31%

Results

Current Price$202.30

Implied Near-term FCF Growth20.9%

Historical Revenue Growth10.4%

Historical Earnings Growth6.8%

Base FCF (TTM)$1.51B

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: $1.62

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$33.37

Current Price$202.30

Upside / Downside-83.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.12B

Target EV/EBITDA multipleCurrent: 21.4×

Net Debt($B)Default: $1.13B

Results

Implied Equity Value / share$202.30

Current Price$202.30

Upside / Downside+0.0%

Implied EV$66.56B

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

Mult \ Net Debt	$1.13B	$1.13B	$1.13B	$1.13B	$1.13B
17.4x	$163.77	$163.77	$163.77	$163.77	$163.77
19.4x	$183.03	$183.03	$183.03	$183.03	$183.03
21.4x	$202.30	$202.30	$202.30	$202.30	$202.30
23.4x	$221.57	$221.57	$221.57	$221.57	$221.57
25.4x	$240.84	$240.84	$240.84	$240.84	$240.84

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