RRR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($60.55)
DCF	$0.88	-98.6%
Graham Number	$15.84	-73.8%
Reverse DCF	—	implied g: 17.4%
DDM	$21.42	-64.6%
EV/EBITDA	$61.00	+0.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $192.84M

Near-term growth (yrs 1–5)(%)Rev: 3.2% / EPS: -1.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.57%

Computed WACC: 9.57%

Cost of equity (Re)12.29%(Rf 4.30% + β 1.45 × ERP 5.50%)

Cost of debt (Rd)5.93%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)64.20%

Debt weight (D/V)35.80%

Results

Intrinsic Value / share$-3.73

Current Price$60.55

Upside / Downside-106.2%

Net Debt (used)$3.33B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$1.36	$12.88	$26.27	$41.78	$59.63
8.0%	$-8.77	$0.50	$11.26	$23.71	$38.02
9.0%	$-15.79	$-8.07	$0.88	$11.21	$23.08
10.0%	$-20.95	$-14.36	$-6.74	$2.05	$12.14
11.0%	$-24.89	$-19.17	$-12.56	$-4.94	$3.79

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.12

Book Value / share($)Yahoo: $3.57

Results

Graham Number$15.84

Current Price$60.55

Margin of Safety-73.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.57%

Terminal growth rate(%)

Computed WACC: 9.57%

Cost of equity (Re)12.29%(Rf 4.30% + β 1.45 × ERP 5.50%)

Cost of debt (Rd)5.93%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)64.20%

Debt weight (D/V)35.80%

Results

Current Price$60.55

Implied Near-term FCF Growth19.1%

Historical Revenue Growth3.2%

Historical Earnings Growth-1.8%

Base FCF (TTM)$192.84M

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: $1.04

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$21.42

Current Price$60.55

Upside / Downside-64.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $813.85M

Target EV/EBITDA multipleCurrent: 8.6×

Net Debt($B)Default: $3.33B

Results

Implied Equity Value / share$61.00

Current Price$60.55

Upside / Downside+0.7%

Implied EV$6.99B

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

Mult \ Net Debt	$1.33B	$2.33B	$3.33B	$4.33B	$5.33B
4.6x	$40.06	$23.39	$6.71	$-9.96	$-26.64
6.6x	$67.21	$50.53	$33.86	$17.18	$0.51
8.6x	$94.35	$77.67	$61.00	$44.32	$27.65
10.6x	$121.49	$104.81	$88.14	$71.46	$54.79
12.6x	$148.63	$131.96	$115.28	$98.61	$81.93

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