SO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($97.39)
DCF	$-140.11	-243.9%
Graham Number	$53.95	-44.6%
Reverse DCF	—	—
DDM	$60.98	-37.4%
EV/EBITDA	$101.59	+4.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$3.46B

Near-term growth (yrs 1–5)(%)Rev: 10.1% / EPS: -22.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.68%

Computed WACC: 5.68%

Cost of equity (Re)6.76%(Rf 4.30% + β 0.45 × ERP 5.50%)

Cost of debt (Rd)5.21%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)59.14%

Debt weight (D/V)40.86%

Results

Intrinsic Value / share$-223.49

Current Price$97.39

Upside / Downside-329.5%

Net Debt (used)$72.44B

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

WACC \ Near-term	2.1%	6.1%	10.1%	14.1%	18.1%
7.0%	$-143.02	$-158.12	$-175.59	$-195.69	$-218.72
8.0%	$-128.64	$-140.72	$-154.67	$-170.71	$-189.07
9.0%	$-118.71	$-128.70	$-140.24	$-153.48	$-168.63
10.0%	$-111.44	$-119.92	$-129.69	$-140.90	$-153.70
11.0%	$-105.89	$-113.22	$-121.65	$-131.31	$-142.34

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.02

Book Value / share($)Yahoo: $32.18

Results

Graham Number$53.95

Current Price$97.39

Margin of Safety-44.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.68%

Terminal growth rate(%)

Computed WACC: 5.68%

Cost of equity (Re)6.76%(Rf 4.30% + β 0.45 × ERP 5.50%)

Cost of debt (Rd)5.21%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)59.14%

Debt weight (D/V)40.86%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$97.39

Implied Near-term FCF Growth—

Historical Revenue Growth10.1%

Historical Earnings Growth-22.1%

Base FCF (TTM)-$3.46B

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: $2.96

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$60.98

Current Price$97.39

Upside / Downside-37.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $13.93B

Target EV/EBITDA multipleCurrent: 13.2×

Net Debt($B)Default: $72.44B

Results

Implied Equity Value / share$101.59

Current Price$97.39

Upside / Downside+4.3%

Implied EV$184.30B

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

Mult \ Net Debt	$36.44B	$54.44B	$72.44B	$90.44B	$108.44B
9.2x	$83.69	$67.34	$51.00	$34.65	$18.30
11.2x	$108.99	$92.64	$76.29	$59.95	$43.60
13.2x	$134.28	$117.94	$101.59	$85.24	$68.89
15.2x	$159.58	$143.23	$126.89	$110.54	$94.19
17.2x	$184.88	$168.53	$152.18	$135.83	$119.49

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