SR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($91.66)
DCF	$-288.37	-414.6%
Graham Number	$74.51	-18.7%
Reverse DCF	—	—
DDM	$67.98	-25.8%
EV/EBITDA	$95.76	+4.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$374.70M

Near-term growth (yrs 1–5)(%)Rev: 13.9% / EPS: 14.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.18%

Computed WACC: 6.18%

Cost of equity (Re)7.78%(Rf 4.30% + β 0.63 × ERP 5.50%)

Cost of debt (Rd)5.77%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)50.31%

Debt weight (D/V)49.69%

Results

Intrinsic Value / share$-457.02

Current Price$91.66

Upside / Downside-598.6%

Net Debt (used)$5.35B

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

WACC \ Near-term	6.9%	10.9%	14.9%	18.9%	22.9%
7.0%	$-300.43	$-340.12	$-385.78	$-438.06	$-497.66
8.0%	$-260.00	$-291.59	$-327.89	$-369.43	$-416.74
9.0%	$-232.14	$-258.16	$-288.03	$-322.18	$-361.05
10.0%	$-211.81	$-233.77	$-258.97	$-287.74	$-320.47
11.0%	$-196.34	$-215.23	$-236.88	$-261.58	$-289.65

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.57

Book Value / share($)Yahoo: $53.99

Results

Graham Number$74.51

Current Price$91.66

Margin of Safety-18.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.18%

Terminal growth rate(%)

Computed WACC: 6.18%

Cost of equity (Re)7.78%(Rf 4.30% + β 0.63 × ERP 5.50%)

Cost of debt (Rd)5.77%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)50.31%

Debt weight (D/V)49.69%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$91.66

Implied Near-term FCF Growth—

Historical Revenue Growth13.9%

Historical Earnings Growth14.9%

Base FCF (TTM)-$374.70M

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: $3.30

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.98

Current Price$91.66

Upside / Downside-25.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $872.60M

Target EV/EBITDA multipleCurrent: 12.6×

Net Debt($B)Default: $5.35B

Results

Implied Equity Value / share$95.76

Current Price$91.66

Upside / Downside+4.5%

Implied EV$11.00B

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

Mult \ Net Debt	$3.35B	$4.35B	$5.35B	$6.35B	$7.35B
8.6x	$70.54	$53.62	$36.70	$19.77	$2.85
10.6x	$100.07	$83.15	$66.23	$49.31	$32.38
12.6x	$129.60	$112.68	$95.76	$78.84	$61.91
14.6x	$159.13	$142.21	$125.29	$108.37	$91.45
16.6x	$188.66	$171.74	$154.82	$137.90	$120.98

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