RSG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($231.20)
DCF	$71.37	-69.1%
Graham Number	$77.33	-66.6%
Reverse DCF	—	implied g: 22.5%
DDM	$51.50	-77.7%
EV/EBITDA	$230.38	-0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.77B

Near-term growth (yrs 1–5)(%)Rev: 2.2% / EPS: 7.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.01%

Computed WACC: 6.01%

Cost of equity (Re)7.17%(Rf 4.30% + β 0.52 × 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)83.83%

Debt weight (D/V)16.17%

Results

Intrinsic Value / share$174.02

Current Price$231.20

Upside / Downside-24.7%

Net Debt (used)$13.73B

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

WACC \ Near-term	-0.6%	3.4%	7.4%	11.4%	15.4%
7.0%	$73.94	$97.52	$124.87	$156.44	$192.70
8.0%	$52.40	$71.32	$93.23	$118.50	$147.50
9.0%	$37.49	$53.20	$71.37	$92.29	$116.28
10.0%	$26.57	$39.93	$55.37	$73.12	$93.46
11.0%	$18.22	$29.80	$43.15	$58.50	$76.06

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.84

Book Value / share($)Yahoo: $38.86

Results

Graham Number$77.33

Current Price$231.20

Margin of Safety-66.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.01%

Terminal growth rate(%)

Computed WACC: 6.01%

Cost of equity (Re)7.17%(Rf 4.30% + β 0.52 × 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)83.83%

Debt weight (D/V)16.17%

Results

Current Price$231.20

Implied Near-term FCF Growth11.1%

Historical Revenue Growth2.2%

Historical Earnings Growth7.4%

Base FCF (TTM)$1.77B

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: $2.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$51.50

Current Price$231.20

Upside / Downside-77.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.14B

Target EV/EBITDA multipleCurrent: 16.5×

Net Debt($B)Default: $13.73B

Results

Implied Equity Value / share$230.38

Current Price$231.20

Upside / Downside-0.4%

Implied EV$84.87B

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

Mult \ Net Debt	$7.73B	$10.73B	$13.73B	$16.73B	$19.73B
12.5x	$183.22	$173.50	$163.79	$154.07	$144.36
14.5x	$216.51	$206.80	$197.08	$187.37	$177.66
16.5x	$249.81	$240.10	$230.38	$220.67	$210.95
18.5x	$283.11	$273.39	$263.68	$253.96	$244.25
20.5x	$316.40	$306.69	$296.97	$287.26	$277.54

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