TKO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($224.96)
DCF	$210.07	-6.6%
Graham Number	$53.12	-76.4%
Reverse DCF	—	implied g: 12.9%
DDM	$64.27	-71.4%
EV/EBITDA	$292.08	+29.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $754.51M

Near-term growth (yrs 1–5)(%)Rev: 11.9% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.46%

Computed WACC: 5.46%

Cost of equity (Re)5.58%(Rf 4.30% + β 0.23 × ERP 5.50%)

Cost of debt (Rd)6.22%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.97%

Debt weight (D/V)18.03%

Results

Intrinsic Value / share$536.07

Current Price$224.96

Upside / Downside+138.3%

Net Debt (used)$3.23B

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

WACC \ Near-term	3.9%	7.9%	11.9%	15.9%	19.9%
7.0%	$221.39	$272.04	$330.49	$397.63	$474.42
8.0%	$171.91	$212.35	$258.97	$312.46	$373.58
9.0%	$137.77	$171.18	$209.64	$253.74	$304.09
10.0%	$112.81	$141.10	$173.63	$210.89	$253.39
11.0%	$93.79	$118.19	$146.22	$178.29	$214.83

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.61

Book Value / share($)Yahoo: $48.06

Results

Graham Number$53.12

Current Price$224.96

Margin of Safety-76.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.46%

Terminal growth rate(%)

Computed WACC: 5.46%

Cost of equity (Re)5.58%(Rf 4.30% + β 0.23 × ERP 5.50%)

Cost of debt (Rd)6.22%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)81.97%

Debt weight (D/V)18.03%

Results

Current Price$224.96

Implied Near-term FCF Growth-0.0%

Historical Revenue Growth11.9%

Historical Earnings Growth—

Base FCF (TTM)$754.51M

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: $3.12

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$64.27

Current Price$224.96

Upside / Downside-71.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.37B

Target EV/EBITDA multipleCurrent: 19.2×

Net Debt($B)Default: $3.23B

Results

Implied Equity Value / share$292.08

Current Price$224.96

Upside / Downside+29.8%

Implied EV$26.28B

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

Mult \ Net Debt	$1.23B	$2.23B	$3.23B	$4.23B	$5.23B
15.2x	$248.14	$235.47	$222.80	$210.13	$197.45
17.2x	$282.78	$270.11	$257.44	$244.77	$232.10
19.2x	$317.43	$304.76	$292.08	$279.41	$266.74
21.2x	$352.07	$339.40	$326.73	$314.06	$301.39
23.2x	$386.71	$374.04	$361.37	$348.70	$336.03

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