RPM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($110.62)
DCF	$36.92	-66.6%
Graham Number	$53.42	-51.7%
Reverse DCF	—	implied g: 19.4%
DDM	$44.50	-59.8%
EV/EBITDA	$110.63	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $414.67M

Near-term growth (yrs 1–5)(%)Rev: 3.5% / EPS: -11.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.17%

Computed WACC: 9.17%

Cost of equity (Re)10.36%(Rf 4.30% + β 1.10 × ERP 5.50%)

Cost of debt (Rd)4.17%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.18%

Debt weight (D/V)16.82%

Results

Intrinsic Value / share$35.45

Current Price$110.62

Upside / Downside-67.9%

Net Debt (used)$2.55B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$37.41	$49.00	$62.49	$78.10	$96.08
8.0%	$27.21	$36.54	$47.38	$59.91	$74.32
9.0%	$20.14	$27.91	$36.92	$47.32	$59.28
10.0%	$14.95	$21.58	$29.25	$38.10	$48.26
11.0%	$10.98	$16.73	$23.39	$31.06	$39.85

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.19

Book Value / share($)Yahoo: $24.43

Results

Graham Number$53.42

Current Price$110.62

Margin of Safety-51.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.17%

Terminal growth rate(%)

Computed WACC: 9.17%

Cost of equity (Re)10.36%(Rf 4.30% + β 1.10 × ERP 5.50%)

Cost of debt (Rd)4.17%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.18%

Debt weight (D/V)16.82%

Results

Current Price$110.62

Implied Near-term FCF Growth19.9%

Historical Revenue Growth3.5%

Historical Earnings Growth-11.6%

Base FCF (TTM)$414.67M

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: $2.16

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$44.50

Current Price$110.62

Upside / Downside-59.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.12B

Target EV/EBITDA multipleCurrent: 14.9×

Net Debt($B)Default: $2.55B

Results

Implied Equity Value / share$110.63

Current Price$110.62

Upside / Downside+0.0%

Implied EV$16.72B

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

Mult \ Net Debt	$551.53M	$1.55B	$2.55B	$3.55B	$4.55B
10.9x	$91.29	$83.48	$75.67	$67.86	$60.05
12.9x	$108.77	$100.96	$93.15	$85.34	$77.54
14.9x	$126.25	$118.44	$110.63	$102.83	$95.02
16.9x	$143.73	$135.92	$128.12	$120.31	$112.50
18.9x	$161.21	$153.41	$145.60	$137.79	$129.98

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