SIGI — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($82.82)
DCF	$8186.60	+9784.8%
Graham Number	$97.79	+18.1%
Reverse DCF	—	implied g: -17.1%
DDM	$33.37	-59.7%
EV/EBITDA	$88.19	+6.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.11B

Near-term growth (yrs 1–5)(%)Rev: 8.6% / EPS: 65.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.82%

Computed WACC: 5.82%

Cost of equity (Re)5.45%(Rf 4.30% + β 0.21 × ERP 5.50%)

Cost of debt (Rd)9.71%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.24%

Debt weight (D/V)16.76%

Results

Intrinsic Value / share$19065.65

Current Price$82.82

Upside / Downside+22920.6%

Net Debt (used)$358.32M

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

WACC \ Near-term	57.8%	61.8%	65.8%	69.8%	73.8%
7.0%	$10304.92	$11667.74	$13171.47	$14826.79	$16644.89
8.0%	$7988.14	$9042.33	$10205.37	$11485.50	$12891.37
9.0%	$6411.19	$7255.37	$8186.60	$9211.46	$10336.86
10.0%	$5276.16	$5969.25	$6733.71	$7574.92	$8498.55
11.0%	$4425.51	$5005.43	$5644.96	$6348.61	$7121.10

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.49

Book Value / share($)Yahoo: $56.74

Results

Graham Number$97.79

Current Price$82.82

Margin of Safety+18.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.82%

Terminal growth rate(%)

Computed WACC: 5.82%

Cost of equity (Re)5.45%(Rf 4.30% + β 0.21 × ERP 5.50%)

Cost of debt (Rd)9.71%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.24%

Debt weight (D/V)16.76%

Results

Current Price$82.82

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth8.6%

Historical Earnings Growth65.8%

Base FCF (TTM)$1.11B

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: $1.62

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$33.37

Current Price$82.82

Upside / Downside-59.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $671.43M

Target EV/EBITDA multipleCurrent: 8.4×

Net Debt($B)Default: $358.32M

Results

Implied Equity Value / share$88.19

Current Price$82.82

Upside / Downside+6.5%

Implied EV$5.66B

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

Mult \ Net Debt	-$1.64B	-$641.68M	$358.32M	$1.36B	$2.36B
4.4x	$76.77	$60.13	$43.49	$26.84	$10.20
6.4x	$99.13	$82.48	$65.84	$49.19	$32.55
8.4x	$121.48	$104.83	$88.19	$71.54	$54.90
10.4x	$143.83	$127.18	$110.54	$93.89	$77.25
12.4x	$166.18	$149.53	$132.89	$116.25	$99.60

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