SWK — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($84.03)
DCF	$57.68	-31.4%
Graham Number	$59.01	-29.8%
Reverse DCF	—	implied g: 9.1%
DDM	$68.39	-18.6%
EV/EBITDA	$86.49	+2.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $854.70M

Near-term growth (yrs 1–5)(%)Rev: -1.0% / EPS: -19.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.70%

Computed WACC: 9.70%

Cost of equity (Re)10.92%(Rf 4.30% + β 1.20 × ERP 5.50%)

Cost of debt (Rd)9.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)67.27%

Debt weight (D/V)32.73%

Results

Intrinsic Value / share$48.16

Current Price$84.03

Upside / Downside-42.7%

Net Debt (used)$6.06B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$58.51	$78.25	$101.21	$127.78	$158.38
8.0%	$41.15	$57.03	$75.48	$96.81	$121.34
9.0%	$29.11	$42.34	$57.68	$75.39	$95.74
10.0%	$20.28	$31.56	$44.63	$59.70	$76.99
11.0%	$13.52	$23.32	$34.66	$47.71	$62.67

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.65

Book Value / share($)Yahoo: $58.40

Results

Graham Number$59.01

Current Price$84.03

Margin of Safety-29.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.70%

Terminal growth rate(%)

Computed WACC: 9.70%

Cost of equity (Re)10.92%(Rf 4.30% + β 1.20 × ERP 5.50%)

Cost of debt (Rd)9.09%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)67.27%

Debt weight (D/V)32.73%

Results

Current Price$84.03

Implied Near-term FCF Growth11.0%

Historical Revenue Growth-1.0%

Historical Earnings Growth-19.3%

Base FCF (TTM)$854.70M

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: $3.32

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$68.39

Current Price$84.03

Upside / Downside-18.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.69B

Target EV/EBITDA multipleCurrent: 11.5×

Net Debt($B)Default: $6.06B

Results

Implied Equity Value / share$86.49

Current Price$84.03

Upside / Downside+2.9%

Implied EV$19.47B

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

Mult \ Net Debt	$2.06B	$4.06B	$6.06B	$8.06B	$10.06B
7.5x	$68.79	$55.89	$43.00	$30.10	$17.20
9.5x	$90.54	$77.64	$64.74	$51.85	$38.95
11.5x	$112.28	$99.39	$86.49	$73.60	$60.70
13.5x	$134.03	$121.14	$108.24	$95.34	$82.45
15.5x	$155.78	$142.88	$129.99	$117.09	$104.19

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