TSCO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($50.97)
DCF	$6.26	-87.7%
Graham Number	$15.07	-70.4%
Reverse DCF	—	implied g: 27.5%
DDM	$19.78	-61.2%
EV/EBITDA	$52.28	+2.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $515.10M

Near-term growth (yrs 1–5)(%)Rev: 3.3% / EPS: -2.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.66%

Computed WACC: 6.66%

Cost of equity (Re)8.14%(Rf 4.30% + β 0.70 × 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)81.86%

Debt weight (D/V)18.14%

Results

Intrinsic Value / share$16.04

Current Price$50.97

Upside / Downside-68.5%

Net Debt (used)$5.75B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$6.41	$9.91	$13.99	$18.71	$24.14
8.0%	$3.32	$6.14	$9.42	$13.21	$17.56
9.0%	$1.19	$3.54	$6.26	$9.40	$13.02
10.0%	$-0.38	$1.62	$3.94	$6.62	$9.69
11.0%	$-1.58	$0.16	$2.17	$4.49	$7.15

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.06

Book Value / share($)Yahoo: $4.90

Results

Graham Number$15.07

Current Price$50.97

Margin of Safety-70.4%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.66%

Terminal growth rate(%)

Computed WACC: 6.66%

Cost of equity (Re)8.14%(Rf 4.30% + β 0.70 × 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)81.86%

Debt weight (D/V)18.14%

Results

Current Price$50.97

Implied Near-term FCF Growth18.5%

Historical Revenue Growth3.3%

Historical Earnings Growth-2.2%

Base FCF (TTM)$515.10M

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: $0.96

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$19.78

Current Price$50.97

Upside / Downside-61.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.96B

Target EV/EBITDA multipleCurrent: 17.0×

Net Debt($B)Default: $5.75B

Results

Implied Equity Value / share$52.28

Current Price$50.97

Upside / Downside+2.6%

Implied EV$33.27B

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

Mult \ Net Debt	$3.75B	$4.75B	$5.75B	$6.75B	$7.75B
13.0x	$41.18	$39.28	$37.38	$35.48	$33.58
15.0x	$48.63	$46.73	$44.83	$42.93	$41.03
17.0x	$56.08	$54.18	$52.28	$50.38	$48.48
19.0x	$63.53	$61.63	$59.73	$57.83	$55.93
21.0x	$70.99	$69.09	$67.19	$65.29	$63.39

← Overview Financial Statements ← Companies