SRE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($95.67)
DCF	$-799.45	-935.6%
Graham Number	$59.49	-37.8%
Reverse DCF	—	—
DDM	$54.18	-43.4%
EV/EBITDA	$111.70	+16.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$27.73B

Near-term growth (yrs 1–5)(%)Rev: -0.2% / EPS: -48.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.40%

Computed WACC: 5.40%

Cost of equity (Re)8.44%(Rf 4.30% + β 0.75 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)64.07%

Debt weight (D/V)35.93%

Results

Intrinsic Value / share$-1736.90

Current Price$95.67

Upside / Downside-1915.5%

Net Debt (used)$34.99B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-805.86	$-957.98	$-1134.96	$-1339.79	$-1575.71
8.0%	$-672.01	$-794.45	$-936.68	$-1101.07	$-1290.19
9.0%	$-579.25	$-681.20	$-799.45	$-935.95	$-1092.79
10.0%	$-511.16	$-598.14	$-698.87	$-814.99	$-948.26
11.0%	$-459.03	$-534.60	$-621.98	$-722.59	$-837.93

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.25

Book Value / share($)Yahoo: $48.40

Results

Graham Number$59.49

Current Price$95.67

Margin of Safety-37.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.40%

Terminal growth rate(%)

Computed WACC: 5.40%

Cost of equity (Re)8.44%(Rf 4.30% + β 0.75 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

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

Equity weight (E/V)64.07%

Debt weight (D/V)35.93%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$95.67

Implied Near-term FCF Growth—

Historical Revenue Growth-0.2%

Historical Earnings Growth-48.2%

Base FCF (TTM)-$27.73B

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: $2.63

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$54.18

Current Price$95.67

Upside / Downside-43.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.50B

Target EV/EBITDA multipleCurrent: 19.6×

Net Debt($B)Default: $34.99B

Results

Implied Equity Value / share$111.70

Current Price$95.67

Upside / Downside+16.8%

Implied EV$107.90B

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

Mult \ Net Debt	$16.99B	$25.99B	$34.99B	$43.99B	$52.99B
15.6x	$105.57	$91.78	$77.99	$64.20	$50.41
17.6x	$122.42	$108.63	$94.84	$81.05	$67.26
19.6x	$139.28	$125.49	$111.70	$97.91	$84.12
21.6x	$156.14	$142.35	$128.56	$114.77	$100.98
23.6x	$172.99	$159.20	$145.41	$131.62	$117.83

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