UDR — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($37.45)
DCF	$29.42	-21.4%
Graham Number	$15.85	-57.7%
Reverse DCF	—	implied g: 7.7%
DDM	$35.43	-5.4%
EV/EBITDA	$40.20	+7.3%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $892.48M

Near-term growth (yrs 1–5)(%)Rev: 1.5% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.54%

Computed WACC: 6.54%

Cost of equity (Re)8.19%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)3.38%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.13%

Debt weight (D/V)29.87%

Results

Intrinsic Value / share$58.81

Current Price$37.45

Upside / Downside+57.0%

Net Debt (used)$6.00B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$29.83	$39.55	$50.87	$63.96	$79.05
8.0%	$21.27	$29.10	$38.19	$48.70	$60.79
9.0%	$15.34	$21.86	$29.42	$38.14	$48.17
10.0%	$10.98	$16.55	$22.99	$30.41	$38.93
11.0%	$7.65	$12.48	$18.07	$24.50	$31.88

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.13

Book Value / share($)Yahoo: $9.89

Results

Graham Number$15.85

Current Price$37.45

Margin of Safety-57.7%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.54%

Terminal growth rate(%)

Computed WACC: 6.54%

Cost of equity (Re)8.19%(Rf 4.30% + β 0.71 × ERP 5.50%)

Cost of debt (Rd)3.38%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)70.13%

Debt weight (D/V)29.87%

Results

Current Price$37.45

Implied Near-term FCF Growth-0.1%

Historical Revenue Growth1.5%

Historical Earnings Growth—

Base FCF (TTM)$892.48M

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: $1.72

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$35.43

Current Price$37.45

Upside / Downside-5.4%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.04B

Target EV/EBITDA multipleCurrent: 18.6×

Net Debt($B)Default: $6.00B

Results

Implied Equity Value / share$40.20

Current Price$37.45

Upside / Downside+7.3%

Implied EV$19.21B

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

Mult \ Net Debt	$2.00B	$4.00B	$6.00B	$8.00B	$10.00B
14.6x	$39.77	$33.68	$27.60	$21.51	$15.42
16.6x	$46.07	$39.99	$33.90	$27.81	$21.72
18.6x	$52.37	$46.29	$40.20	$34.11	$28.03
20.6x	$58.67	$52.59	$46.50	$40.41	$34.33
22.6x	$64.98	$58.89	$52.80	$46.71	$40.63

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