TXNM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($59.20)
DCF	$-221.86	-474.8%
Graham Number	$35.58	-39.9%
Reverse DCF	—	—
DDM	$34.81	-41.2%
EV/EBITDA	$59.71	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$706.39M

Near-term growth (yrs 1–5)(%)Rev: 11.8% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 2.79%

Computed WACC: 2.79%

Cost of equity (Re)5.27%(Rf 4.30% + β 0.18 × 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)52.89%

Debt weight (D/V)47.11%

Results

Intrinsic Value / share$-4198.43

Current Price$59.20

Upside / Downside-7191.9%

Net Debt (used)$5.72B

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

WACC \ Near-term	3.8%	7.8%	11.8%	15.8%	19.8%
7.0%	$-229.73	$-263.96	$-303.47	$-348.87	$-400.78
8.0%	$-196.33	$-223.66	$-255.17	$-291.33	$-332.66
9.0%	$-173.27	$-195.85	$-221.86	$-251.68	$-285.71
10.0%	$-156.42	$-175.54	$-197.54	$-222.73	$-251.46
11.0%	$-143.58	$-160.07	$-179.02	$-200.71	$-225.42

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.80

Book Value / share($)Yahoo: $31.25

Results

Graham Number$35.58

Current Price$59.20

Margin of Safety-39.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 2.79%

Terminal growth rate(%)

Computed WACC: 2.79%

Cost of equity (Re)5.27%(Rf 4.30% + β 0.18 × 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)52.89%

Debt weight (D/V)47.11%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$59.20

Implied Near-term FCF Growth—

Historical Revenue Growth11.8%

Historical Earnings Growth—

Base FCF (TTM)-$706.39M

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: $1.69

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$34.81

Current Price$59.20

Upside / Downside-41.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $864.86M

Target EV/EBITDA multipleCurrent: 14.1×

Net Debt($B)Default: $5.72B

Results

Implied Equity Value / share$59.71

Current Price$59.20

Upside / Downside+0.9%

Implied EV$12.23B

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

Mult \ Net Debt	$3.72B	$4.72B	$5.72B	$6.72B	$7.72B
10.1x	$46.31	$37.13	$27.95	$18.76	$9.58
12.1x	$62.19	$53.01	$43.83	$34.64	$25.46
14.1x	$78.07	$68.89	$59.71	$50.53	$41.34
16.1x	$93.95	$84.77	$75.59	$66.41	$57.22
18.1x	$109.83	$100.65	$91.47	$82.29	$73.11

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