SHW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($356.10)
DCF	$85.60	-76.0%
Graham Number	$65.65	-81.6%
Reverse DCF	—	implied g: 24.2%
DDM	$65.92	-81.5%
EV/EBITDA	$354.05	-0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.93B

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: 1.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.14%

Computed WACC: 10.14%

Cost of equity (Re)11.22%(Rf 4.30% + β 1.26 × ERP 5.50%)

Cost of debt (Rd)4.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.24%

Debt weight (D/V)13.76%

Results

Intrinsic Value / share$64.10

Current Price$356.10

Upside / Downside-82.0%

Net Debt (used)$13.87B

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

WACC \ Near-term	-2.4%	1.6%	5.6%	9.6%	13.6%
7.0%	$87.30	$116.16	$149.71	$188.52	$233.18
8.0%	$61.66	$84.87	$111.81	$142.94	$178.72
9.0%	$43.90	$63.21	$85.60	$111.42	$141.08
10.0%	$30.87	$47.33	$66.39	$88.34	$113.52
11.0%	$20.89	$35.19	$51.71	$70.72	$92.50

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.26

Book Value / share($)Yahoo: $18.67

Results

Graham Number$65.65

Current Price$356.10

Margin of Safety-81.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.14%

Terminal growth rate(%)

Computed WACC: 10.14%

Cost of equity (Re)11.22%(Rf 4.30% + β 1.26 × ERP 5.50%)

Cost of debt (Rd)4.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)86.24%

Debt weight (D/V)13.76%

Results

Current Price$356.10

Implied Near-term FCF Growth27.8%

Historical Revenue Growth5.6%

Historical Earnings Growth1.4%

Base FCF (TTM)$1.93B

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: $3.20

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$65.92

Current Price$356.10

Upside / Downside-81.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.49B

Target EV/EBITDA multipleCurrent: 22.6×

Net Debt($B)Default: $13.87B

Results

Implied Equity Value / share$354.05

Current Price$356.10

Upside / Downside-0.6%

Implied EV$101.59B

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

Mult \ Net Debt	$7.87B	$10.87B	$13.87B	$16.87B	$19.87B
18.6x	$305.83	$293.72	$281.62	$269.51	$257.40
20.6x	$342.05	$329.94	$317.83	$305.72	$293.62
22.6x	$378.26	$366.15	$354.05	$341.94	$329.83
24.6x	$414.48	$402.37	$390.26	$378.15	$366.05
26.6x	$450.69	$438.58	$426.48	$414.37	$402.26

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