TMO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($508.58)
DCF	$180.67	-64.5%
Graham Number	$238.10	-53.2%
Reverse DCF	—	implied g: 23.4%
DDM	$36.26	-92.9%
EV/EBITDA	$503.20	-1.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $4.39B

Near-term growth (yrs 1–5)(%)Rev: 7.2% / EPS: 9.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.93%

Computed WACC: 7.93%

Cost of equity (Re)9.64%(Rf 4.30% + β 0.97 × 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)82.21%

Debt weight (D/V)17.79%

Results

Intrinsic Value / share$236.23

Current Price$508.58

Upside / Downside-53.6%

Net Debt (used)$31.25B

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

WACC \ Near-term	1.3%	5.3%	9.3%	13.3%	17.3%
7.0%	$189.82	$243.50	$305.63	$377.20	$459.27
8.0%	$139.32	$182.29	$231.97	$289.13	$354.60
9.0%	$104.41	$140.01	$181.11	$228.35	$282.40
10.0%	$78.86	$109.08	$143.92	$183.93	$229.67
11.0%	$59.36	$85.49	$115.58	$150.09	$189.51

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $17.75

Book Value / share($)Yahoo: $141.96

Results

Graham Number$238.10

Current Price$508.58

Margin of Safety-53.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.93%

Terminal growth rate(%)

Computed WACC: 7.93%

Cost of equity (Re)9.64%(Rf 4.30% + β 0.97 × 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)82.21%

Debt weight (D/V)17.79%

Results

Current Price$508.58

Implied Near-term FCF Growth19.8%

Historical Revenue Growth7.2%

Historical Earnings Growth9.3%

Base FCF (TTM)$4.39B

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: $1.76

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$36.26

Current Price$508.58

Upside / Downside-92.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $11.14B

Target EV/EBITDA multipleCurrent: 19.8×

Net Debt($B)Default: $31.25B

Results

Implied Equity Value / share$503.20

Current Price$508.58

Upside / Downside-1.1%

Implied EV$220.31B

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

Mult \ Net Debt	$15.25B	$23.25B	$31.25B	$39.25B	$47.25B
15.8x	$427.20	$405.91	$384.62	$363.32	$342.03
17.8x	$486.49	$465.20	$443.91	$422.61	$401.32
19.8x	$545.78	$524.49	$503.20	$481.91	$460.61
21.8x	$605.08	$583.78	$562.49	$541.20	$519.90
23.8x	$664.37	$643.07	$621.78	$600.49	$579.19

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