THG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($181.68)
DCF	$1153.95	+535.2%
Graham Number	$202.76	+11.6%
Reverse DCF	—	implied g: -11.6%
DDM	$78.28	-56.9%
EV/EBITDA	$181.68	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $979.57M

Near-term growth (yrs 1–5)(%)Rev: 5.5% / EPS: 19.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.64%

Computed WACC: 5.64%

Cost of equity (Re)5.88%(Rf 4.30% + β 0.29 × ERP 5.50%)

Cost of debt (Rd)5.52%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.98%

Debt weight (D/V)16.02%

Results

Intrinsic Value / share$2598.53

Current Price$181.68

Upside / Downside+1330.3%

Net Debt (used)$95.60M

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

WACC \ Near-term	11.9%	15.9%	19.9%	23.9%	27.9%
7.0%	$1258.33	$1488.28	$1751.40	$2051.18	$2391.37
8.0%	$1008.10	$1190.24	$1398.49	$1635.60	$1904.51
9.0%	$836.01	$985.35	$1155.95	$1350.06	$1570.05
10.0%	$710.74	$836.24	$979.50	$1142.39	$1326.88
11.0%	$615.70	$723.16	$845.73	$984.99	$1142.63

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $18.11

Book Value / share($)Yahoo: $100.89

Results

Graham Number$202.76

Current Price$181.68

Margin of Safety+11.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.64%

Terminal growth rate(%)

Computed WACC: 5.64%

Cost of equity (Re)5.88%(Rf 4.30% + β 0.29 × ERP 5.50%)

Cost of debt (Rd)5.52%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)83.98%

Debt weight (D/V)16.02%

Results

Current Price$181.68

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth5.5%

Historical Earnings Growth19.9%

Base FCF (TTM)$979.57M

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: $3.80

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$78.28

Current Price$181.68

Upside / Downside-56.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $888.50M

Target EV/EBITDA multipleCurrent: 7.3×

Net Debt($B)Default: $95.60M

Results

Implied Equity Value / share$181.68

Current Price$181.68

Upside / Downside+0.0%

Implied EV$6.48B

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

Mult \ Net Debt	-$1.90B	-$904.40M	$95.60M	$1.10B	$2.10B
3.3x	$137.47	$109.02	$80.57	$52.12	$23.67
5.3x	$188.03	$159.58	$131.13	$102.68	$74.23
7.3x	$238.58	$210.13	$181.68	$153.23	$124.78
9.3x	$289.14	$260.69	$232.24	$203.79	$175.34
11.3x	$339.69	$311.24	$282.79	$254.34	$225.89

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