SWKS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($58.93)
DCF	$130.82	+122.0%
Graham Number	$47.50	-19.4%
Reverse DCF	—	implied g: -8.9%
DDM	$58.50	-0.7%
EV/EBITDA	$58.93	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.10B

Near-term growth (yrs 1–5)(%)Rev: -3.1% / EPS: -47.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.42%

Computed WACC: 10.42%

Cost of equity (Re)11.43%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)3.64%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)88.14%

Debt weight (D/V)11.86%

Results

Intrinsic Value / share$107.54

Current Price$58.93

Upside / Downside+82.5%

Net Debt (used)-$365.80M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$131.93	$158.11	$188.58	$223.84	$264.45
8.0%	$108.88	$129.96	$154.44	$182.74	$215.30
9.0%	$92.92	$110.47	$130.82	$154.32	$181.32
10.0%	$81.20	$96.17	$113.51	$133.50	$156.44
11.0%	$72.22	$85.23	$100.27	$117.59	$137.45

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.61

Book Value / share($)Yahoo: $38.42

Results

Graham Number$47.50

Current Price$58.93

Margin of Safety-19.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.42%

Terminal growth rate(%)

Computed WACC: 10.42%

Cost of equity (Re)11.43%(Rf 4.30% + β 1.30 × ERP 5.50%)

Cost of debt (Rd)3.64%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)88.14%

Debt weight (D/V)11.86%

Results

Current Price$58.93

Implied Near-term FCF Growth-6.0%

Historical Revenue Growth-3.1%

Historical Earnings Growth-47.0%

Base FCF (TTM)$1.10B

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: $2.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$58.50

Current Price$58.93

Upside / Downside-0.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $945.70M

Target EV/EBITDA multipleCurrent: 9.0×

Net Debt($B)Default: -$365.80M

Results

Implied Equity Value / share$58.93

Current Price$58.93

Upside / Downside+0.0%

Implied EV$8.50B

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

Mult \ Net Debt	-$2.37B	-$1.37B	-$365.80M	$634.20M	$1.63B
5.0x	$47.08	$40.43	$33.78	$27.13	$20.48
7.0x	$59.66	$53.01	$46.35	$39.70	$33.05
9.0x	$72.23	$65.58	$58.93	$52.28	$45.63
11.0x	$84.81	$78.16	$71.51	$64.86	$58.21
13.0x	$97.39	$90.74	$84.09	$77.44	$70.79

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