TXN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($204.64)
DCF	$-18.88	-109.2%
Graham Number	$46.95	-77.1%
Reverse DCF	—	—
DDM	$117.01	-42.8%
EV/EBITDA	$209.82	+2.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$300.62M

Near-term growth (yrs 1–5)(%)Rev: 10.4% / EPS: -3.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.20%

Computed WACC: 9.20%

Cost of equity (Re)9.68%(Rf 4.30% + β 0.98 × ERP 5.50%)

Cost of debt (Rd)3.93%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.64%

Debt weight (D/V)7.36%

Results

Intrinsic Value / share$-18.63

Current Price$204.64

Upside / Downside-109.1%

Net Debt (used)$9.90B

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

WACC \ Near-term	2.4%	6.4%	10.4%	14.4%	18.4%
7.0%	$-19.19	$-20.81	$-22.67	$-24.82	$-27.28
8.0%	$-17.64	$-18.94	$-20.43	$-22.14	$-24.11
9.0%	$-16.58	$-17.65	$-18.88	$-20.29	$-21.91
10.0%	$-15.80	$-16.70	$-17.75	$-18.94	$-20.31
11.0%	$-15.20	$-15.98	$-16.88	$-17.92	$-19.09

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $5.46

Book Value / share($)Yahoo: $17.94

Results

Graham Number$46.95

Current Price$204.64

Margin of Safety-77.1%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.20%

Terminal growth rate(%)

Computed WACC: 9.20%

Cost of equity (Re)9.68%(Rf 4.30% + β 0.98 × ERP 5.50%)

Cost of debt (Rd)3.93%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.64%

Debt weight (D/V)7.36%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$204.64

Implied Near-term FCF Growth—

Historical Revenue Growth10.4%

Historical Earnings Growth-3.2%

Base FCF (TTM)-$300.62M

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: $5.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$117.01

Current Price$204.64

Upside / Downside-42.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $8.04B

Target EV/EBITDA multipleCurrent: 24.9×

Net Debt($B)Default: $9.90B

Results

Implied Equity Value / share$209.82

Current Price$204.64

Upside / Downside+2.5%

Implied EV$200.32B

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

Mult \ Net Debt	$5.90B	$7.90B	$9.90B	$11.90B	$13.90B
20.9x	$178.77	$176.57	$174.37	$172.16	$169.96
22.9x	$196.50	$194.30	$192.09	$189.89	$187.69
24.9x	$214.23	$212.02	$209.82	$207.62	$205.41
26.9x	$231.95	$229.75	$227.55	$225.34	$223.14
28.9x	$249.68	$247.48	$245.27	$243.07	$240.87

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