RRC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($41.88)
DCF	$2238.51	+5245.1%
Graham Number	$33.87	-19.1%
Reverse DCF	—	implied g: 15.7%
DDM	$8.24	-80.3%
EV/EBITDA	$41.88	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $342.94M

Near-term growth (yrs 1–5)(%)Rev: 16.3% / EPS: 94.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.30%

Computed WACC: 7.30%

Cost of equity (Re)7.52%(Rf 4.30% + β 0.58 × ERP 5.50%)

Cost of debt (Rd)7.24%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)87.85%

Debt weight (D/V)12.15%

Results

Intrinsic Value / share$3362.18

Current Price$41.88

Upside / Downside+7928.1%

Net Debt (used)$1.37B

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

WACC \ Near-term	86.1%	90.1%	94.1%	98.1%	102.1%
7.0%	$2962.01	$3293.77	$3654.59	$4046.34	$4470.98
8.0%	$2276.79	$2531.71	$2808.94	$3109.93	$3436.16
9.0%	$1811.69	$2014.46	$2234.96	$2474.34	$2733.80
10.0%	$1477.96	$1643.31	$1823.12	$2018.31	$2229.85
11.0%	$1228.68	$1366.09	$1515.51	$1677.70	$1853.47

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.78

Book Value / share($)Yahoo: $18.34

Results

Graham Number$33.87

Current Price$41.88

Margin of Safety-19.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.30%

Terminal growth rate(%)

Computed WACC: 7.30%

Cost of equity (Re)7.52%(Rf 4.30% + β 0.58 × ERP 5.50%)

Cost of debt (Rd)7.24%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)87.85%

Debt weight (D/V)12.15%

Results

Current Price$41.88

Implied Near-term FCF Growth10.2%

Historical Revenue Growth16.3%

Historical Earnings Growth94.1%

Base FCF (TTM)$342.94M

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: $0.40

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$8.24

Current Price$41.88

Upside / Downside-80.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.36B

Target EV/EBITDA multipleCurrent: 8.2×

Net Debt($B)Default: $1.37B

Results

Implied Equity Value / share$41.88

Current Price$41.88

Upside / Downside+0.0%

Implied EV$11.23B

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

Mult \ Net Debt	$1.37B	$1.37B	$1.37B	$1.37B	$1.37B
4.2x	$18.73	$18.73	$18.73	$18.73	$18.73
6.2x	$30.30	$30.30	$30.30	$30.30	$30.30
8.2x	$41.88	$41.88	$41.88	$41.88	$41.88
10.2x	$53.46	$53.46	$53.46	$53.46	$53.46
12.2x	$65.04	$65.04	$65.04	$65.04	$65.04

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