SYK — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($387.02)
DCF	$2982.04	+670.5%
Graham Number	$105.25	-72.8%
Reverse DCF	—	implied g: 18.6%
DDM	$72.51	-81.3%
EV/EBITDA	$387.02	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.17B

Near-term growth (yrs 1–5)(%)Rev: 11.4% / EPS: 55.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.51%

Computed WACC: 8.51%

Cost of equity (Re)9.08%(Rf 4.30% + β 0.87 × ERP 5.50%)

Cost of debt (Rd)4.30%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.05%

Debt weight (D/V)9.95%

Results

Intrinsic Value / share$3312.69

Current Price$387.02

Upside / Downside+755.9%

Net Debt (used)$12.26B

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

WACC \ Near-term	47.9%	51.9%	55.9%	59.9%	63.9%
7.0%	$3681.35	$4204.92	$4786.24	$5429.96	$6141.00
8.0%	$2858.97	$3265.30	$3716.36	$4215.77	$4767.30
9.0%	$2298.45	$2624.90	$2987.22	$3388.31	$3831.20
10.0%	$1894.39	$2163.30	$2461.70	$2791.96	$3156.58
11.0%	$1591.07	$1816.81	$2067.25	$2344.39	$2650.30

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $8.40

Book Value / share($)Yahoo: $58.61

Results

Graham Number$105.25

Current Price$387.02

Margin of Safety-72.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.51%

Terminal growth rate(%)

Computed WACC: 8.51%

Cost of equity (Re)9.08%(Rf 4.30% + β 0.87 × ERP 5.50%)

Cost of debt (Rd)4.30%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)90.05%

Debt weight (D/V)9.95%

Results

Current Price$387.02

Implied Near-term FCF Growth17.0%

Historical Revenue Growth11.4%

Historical Earnings Growth55.9%

Base FCF (TTM)$4.17B

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: $3.52

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$72.51

Current Price$387.02

Upside / Downside-81.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.95B

Target EV/EBITDA multipleCurrent: 23.1×

Net Debt($B)Default: $12.26B

Results

Implied Equity Value / share$387.02

Current Price$387.02

Upside / Downside+0.0%

Implied EV$160.37B

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

Mult \ Net Debt	$6.26B	$9.26B	$12.26B	$15.26B	$18.26B
19.1x	$330.07	$322.23	$314.39	$306.55	$298.71
21.1x	$366.38	$358.54	$350.71	$342.87	$335.03
23.1x	$402.70	$394.86	$387.02	$379.18	$371.34
25.1x	$439.02	$431.18	$423.34	$415.50	$407.66
27.1x	$475.33	$467.49	$459.66	$451.82	$443.98

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