SLB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($51.27)
DCF	$23.24	-54.7%
Graham Number	$30.38	-40.7%
Reverse DCF	—	implied g: 16.7%
DDM	$24.31	-52.6%
EV/EBITDA	$52.06	+1.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.45B

Near-term growth (yrs 1–5)(%)Rev: 5.0% / EPS: -28.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.61%

Computed WACC: 7.61%

Cost of equity (Re)8.16%(Rf 4.30% + β 0.70 × ERP 5.50%)

Cost of debt (Rd)5.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.94%

Debt weight (D/V)14.06%

Results

Intrinsic Value / share$31.16

Current Price$51.27

Upside / Downside-39.2%

Net Debt (used)$8.24B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$23.49	$29.36	$36.18	$44.08	$53.17
8.0%	$18.33	$23.05	$28.53	$34.87	$42.16
9.0%	$14.75	$18.68	$23.24	$28.51	$34.55
10.0%	$12.13	$15.48	$19.37	$23.84	$28.98
11.0%	$10.12	$13.03	$16.40	$20.28	$24.73

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.35

Book Value / share($)Yahoo: $17.46

Results

Graham Number$30.38

Current Price$51.27

Margin of Safety-40.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.61%

Terminal growth rate(%)

Computed WACC: 7.61%

Cost of equity (Re)8.16%(Rf 4.30% + β 0.70 × ERP 5.50%)

Cost of debt (Rd)5.37%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)85.94%

Debt weight (D/V)14.06%

Results

Current Price$51.27

Implied Near-term FCF Growth12.2%

Historical Revenue Growth5.0%

Historical Earnings Growth-28.6%

Base FCF (TTM)$2.45B

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: $1.18

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$24.31

Current Price$51.27

Upside / Downside-52.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $7.73B

Target EV/EBITDA multipleCurrent: 11.1×

Net Debt($B)Default: $8.24B

Results

Implied Equity Value / share$52.06

Current Price$51.27

Upside / Downside+1.5%

Implied EV$86.09B

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

Mult \ Net Debt	$4.24B	$6.24B	$8.24B	$10.24B	$12.24B
7.1x	$34.05	$32.71	$31.38	$30.04	$28.70
9.1x	$44.39	$43.06	$41.72	$40.38	$39.04
11.1x	$54.74	$53.40	$52.06	$50.72	$49.39
13.1x	$65.08	$63.74	$62.40	$61.07	$59.73
15.1x	$75.42	$74.08	$72.75	$71.41	$70.07

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