STE — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($247.77)
DCF	$219.20	-11.5%
Graham Number	$107.48	-56.6%
Reverse DCF	—	implied g: 14.1%
DDM	$50.68	-79.5%
EV/EBITDA	$247.91	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $870.70M

Near-term growth (yrs 1–5)(%)Rev: 9.2% / EPS: 12.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.26%

Computed WACC: 9.26%

Cost of equity (Re)10.04%(Rf 4.30% + β 1.04 × 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)92.21%

Debt weight (D/V)7.79%

Results

Intrinsic Value / share$209.01

Current Price$247.77

Upside / Downside-15.6%

Net Debt (used)$1.63B

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

WACC \ Near-term	4.1%	8.1%	12.1%	16.1%	20.1%
7.0%	$230.08	$277.65	$332.53	$395.56	$467.62
8.0%	$183.49	$221.46	$265.22	$315.42	$372.77
9.0%	$151.34	$182.70	$218.80	$260.18	$307.41
10.0%	$127.84	$154.38	$184.91	$219.87	$259.73
11.0%	$109.93	$132.83	$159.12	$189.20	$223.48

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $7.04

Book Value / share($)Yahoo: $72.93

Results

Graham Number$107.48

Current Price$247.77

Margin of Safety-56.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.26%

Terminal growth rate(%)

Computed WACC: 9.26%

Cost of equity (Re)10.04%(Rf 4.30% + β 1.04 × 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)92.21%

Debt weight (D/V)7.79%

Results

Current Price$247.77

Implied Near-term FCF Growth14.8%

Historical Revenue Growth9.2%

Historical Earnings Growth12.1%

Base FCF (TTM)$870.70M

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: $2.46

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$50.68

Current Price$247.77

Upside / Downside-79.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.57B

Target EV/EBITDA multipleCurrent: 16.5×

Net Debt($B)Default: $1.63B

Results

Implied Equity Value / share$247.91

Current Price$247.77

Upside / Downside+0.1%

Implied EV$25.94B

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

Mult \ Net Debt	$1.63B	$1.63B	$1.63B	$1.63B	$1.63B
12.5x	$183.68	$183.68	$183.68	$183.68	$183.68
14.5x	$215.80	$215.80	$215.80	$215.80	$215.80
16.5x	$247.91	$247.91	$247.91	$247.91	$247.91
18.5x	$280.03	$280.03	$280.03	$280.03	$280.03
20.5x	$312.14	$312.14	$312.14	$312.14	$312.14

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