TGT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($113.17)
DCF	$63.93	-43.5%
Graham Number	$79.72	-29.6%
Reverse DCF	—	implied g: 11.8%
DDM	$93.94	-17.0%
EV/EBITDA	$113.79	+0.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.60B

Near-term growth (yrs 1–5)(%)Rev: -1.6% / EPS: -18.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.54%

Computed WACC: 7.54%

Cost of equity (Re)10.55%(Rf 4.30% + β 1.14 × 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)71.53%

Debt weight (D/V)28.47%

Results

Intrinsic Value / share$93.45

Current Price$113.17

Upside / Downside-17.4%

Net Debt (used)$16.65B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$64.79	$85.33	$109.22	$136.88	$168.73
8.0%	$46.72	$63.25	$82.45	$104.65	$130.18
9.0%	$34.20	$47.96	$63.93	$82.36	$103.53
10.0%	$25.01	$36.75	$50.35	$66.02	$84.02
11.0%	$17.97	$28.17	$39.97	$53.55	$69.12

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $8.25

Book Value / share($)Yahoo: $34.23

Results

Graham Number$79.72

Current Price$113.17

Margin of Safety-29.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.54%

Terminal growth rate(%)

Computed WACC: 7.54%

Cost of equity (Re)10.55%(Rf 4.30% + β 1.14 × 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)71.53%

Debt weight (D/V)28.47%

Results

Current Price$113.17

Implied Near-term FCF Growth7.3%

Historical Revenue Growth-1.6%

Historical Earnings Growth-18.4%

Base FCF (TTM)$2.60B

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: $4.56

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$93.94

Current Price$113.17

Upside / Downside-17.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.07B

Target EV/EBITDA multipleCurrent: 8.5×

Net Debt($B)Default: $16.65B

Results

Implied Equity Value / share$113.79

Current Price$113.17

Upside / Downside+0.5%

Implied EV$68.17B

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

Mult \ Net Debt	$8.65B	$12.65B	$16.65B	$20.65B	$24.65B
4.5x	$60.20	$51.37	$42.54	$33.70	$24.87
6.5x	$95.83	$87.00	$78.16	$69.33	$60.50
8.5x	$131.46	$122.62	$113.79	$104.96	$96.12
10.5x	$167.08	$158.25	$149.42	$140.58	$131.75
12.5x	$202.71	$193.88	$185.04	$176.21	$167.38

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