TNET — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($37.42)
DCF	$59.13	+58.0%
Graham Number	$9.06	-75.8%
Reverse DCF	—	implied g: -1.0%
DDM	$22.66	-39.4%
EV/EBITDA	$38.08	+1.8%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $196.62M

Near-term growth (yrs 1–5)(%)Rev: -2.2% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.70%

Computed WACC: 5.70%

Cost of equity (Re)8.68%(Rf 4.30% + β 0.80 × 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)65.61%

Debt weight (D/V)34.39%

Results

Intrinsic Value / share$135.33

Current Price$37.42

Upside / Downside+261.7%

Net Debt (used)$655.00M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$59.76	$74.65	$91.96	$112.01	$135.09
8.0%	$46.66	$58.64	$72.56	$88.65	$107.15
9.0%	$37.59	$47.56	$59.13	$72.49	$87.84
10.0%	$30.92	$39.43	$49.29	$60.65	$73.70
11.0%	$25.82	$33.22	$41.77	$51.61	$62.90

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.20

Book Value / share($)Yahoo: $1.14

Results

Graham Number$9.06

Current Price$37.42

Margin of Safety-75.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.70%

Terminal growth rate(%)

Computed WACC: 5.70%

Cost of equity (Re)8.68%(Rf 4.30% + β 0.80 × 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)65.61%

Debt weight (D/V)34.39%

Results

Current Price$37.42

Implied Near-term FCF Growth-11.0%

Historical Revenue Growth-2.2%

Historical Earnings Growth—

Base FCF (TTM)$196.62M

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: $1.10

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$22.66

Current Price$37.42

Upside / Downside-39.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $236.00M

Target EV/EBITDA multipleCurrent: 10.4×

Net Debt($B)Default: $655.00M

Results

Implied Equity Value / share$38.08

Current Price$37.42

Upside / Downside+1.8%

Implied EV$2.46B

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

Mult \ Net Debt	-$1.34B	-$345.00M	$655.00M	$1.66B	$2.65B
6.4x	$60.40	$39.26	$18.12	$-3.02	$-24.16
8.4x	$70.38	$49.24	$28.10	$6.96	$-14.19
10.4x	$80.36	$59.22	$38.08	$16.94	$-4.21
12.4x	$90.34	$69.20	$48.06	$26.91	$5.77
14.4x	$100.32	$79.18	$58.04	$36.89	$15.75

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