T — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($28.01)
DCF	$11.38	-59.4%
Graham Number	$32.78	+17.0%
Reverse DCF	—	implied g: 12.3%
DDM	$22.87	-18.4%
EV/EBITDA	$30.57	+9.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $12.59B

Near-term growth (yrs 1–5)(%)Rev: 3.6% / EPS: -5.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.24%

Computed WACC: 4.24%

Cost of equity (Re)7.64%(Rf 4.30% + β 0.61 × 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)55.45%

Debt weight (D/V)44.55%

Results

Intrinsic Value / share$98.83

Current Price$28.01

Upside / Downside+252.8%

Net Debt (used)$141.33B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$11.65	$18.09	$25.58	$34.24	$44.23
8.0%	$5.98	$11.16	$17.18	$24.14	$32.14
9.0%	$2.06	$6.37	$11.38	$17.15	$23.79
10.0%	$-0.82	$2.86	$7.12	$12.03	$17.67
11.0%	$-3.03	$0.17	$3.87	$8.12	$13.00

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.04

Book Value / share($)Yahoo: $15.71

Results

Graham Number$32.78

Current Price$28.01

Margin of Safety+17.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.24%

Terminal growth rate(%)

Computed WACC: 4.24%

Cost of equity (Re)7.64%(Rf 4.30% + β 0.61 × 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)55.45%

Debt weight (D/V)44.55%

Results

Current Price$28.01

Implied Near-term FCF Growth-7.8%

Historical Revenue Growth3.6%

Historical Earnings Growth-5.6%

Base FCF (TTM)$12.59B

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: $1.11

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$22.87

Current Price$28.01

Upside / Downside-18.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $44.24B

Target EV/EBITDA multipleCurrent: 8.0×

Net Debt($B)Default: $141.33B

Results

Implied Equity Value / share$30.57

Current Price$28.01

Upside / Downside+9.2%

Implied EV$355.36B

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

Mult \ Net Debt	$71.33B	$106.33B	$141.33B	$176.33B	$211.33B
4.0x	$15.29	$10.29	$5.29	$0.29	$-4.71
6.0x	$27.93	$22.93	$17.93	$12.93	$7.93
8.0x	$40.57	$35.57	$30.57	$25.57	$20.57
10.0x	$53.21	$48.21	$43.21	$38.21	$33.21
12.0x	$65.85	$60.85	$55.85	$50.85	$45.85

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