TEVA — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($33.86)
DCF	$32.75	-3.3%
Graham Number	$13.69	-59.6%
Reverse DCF	—	implied g: 11.8%
DDM	—	—
EV/EBITDA	$33.43	-1.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.03B

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

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.03%

Computed WACC: 7.03%

Cost of equity (Re)8.26%(Rf 4.30% + β 0.72 × ERP 5.50%)

Cost of debt (Rd)5.32%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.59%

Debt weight (D/V)30.41%

Results

Intrinsic Value / share$53.66

Current Price$33.86

Upside / Downside+58.5%

Net Debt (used)$13.67B

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

WACC \ Near-term	3.4%	7.4%	11.4%	15.4%	19.4%
7.0%	$34.72	$43.73	$54.12	$66.07	$79.74
8.0%	$25.99	$33.18	$41.47	$51.00	$61.88
9.0%	$19.96	$25.90	$32.75	$40.61	$49.58
10.0%	$15.55	$20.59	$26.38	$33.02	$40.59
11.0%	$12.19	$16.54	$21.53	$27.25	$33.76

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.21

Book Value / share($)Yahoo: $6.88

Results

Graham Number$13.69

Current Price$33.86

Margin of Safety-59.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.03%

Terminal growth rate(%)

Computed WACC: 7.03%

Cost of equity (Re)8.26%(Rf 4.30% + β 0.72 × ERP 5.50%)

Cost of debt (Rd)5.32%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)69.59%

Debt weight (D/V)30.41%

Results

Current Price$33.86

Implied Near-term FCF Growth5.5%

Historical Revenue Growth11.4%

Historical Earnings Growth—

Base FCF (TTM)$2.03B

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$33.86

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $4.95B

Target EV/EBITDA multipleCurrent: 10.6×

Net Debt($B)Default: $13.67B

Results

Implied Equity Value / share$33.43

Current Price$33.86

Upside / Downside-1.3%

Implied EV$52.61B

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

Mult \ Net Debt	$7.67B	$10.67B	$13.67B	$16.67B	$19.67B
6.6x	$21.57	$18.99	$16.42	$13.84	$11.27
8.6x	$30.08	$27.50	$24.93	$22.35	$19.77
10.6x	$38.58	$36.01	$33.43	$30.86	$28.28
12.6x	$47.09	$44.52	$41.94	$39.36	$36.79
14.6x	$55.60	$53.02	$50.45	$47.87	$45.30

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