VRSN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($228.05)
DCF	$221.21	-3.0%
Graham Number	—	—
Reverse DCF	—	implied g: 12.3%
DDM	$66.74	-70.7%
EV/EBITDA	$228.04	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $823.70M

Near-term growth (yrs 1–5)(%)Rev: 7.6% / EPS: 11.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.11%

Computed WACC: 8.11%

Cost of equity (Re)8.51%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.16%

Debt weight (D/V)7.84%

Results

Intrinsic Value / share$261.46

Current Price$228.05

Upside / Downside+14.7%

Net Debt (used)$1.22B

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

WACC \ Near-term	3.8%	7.8%	11.8%	15.8%	19.8%
7.0%	$232.11	$279.52	$334.25	$397.13	$469.03
8.0%	$185.85	$223.70	$267.35	$317.44	$374.68
9.0%	$153.92	$185.19	$221.21	$262.51	$309.66
10.0%	$130.58	$157.06	$187.52	$222.42	$262.22
11.0%	$112.80	$135.64	$161.88	$191.92	$226.14

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $8.80

Book Value / share($)Yahoo: $-23.44

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$228.05

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.11%

Terminal growth rate(%)

Computed WACC: 8.11%

Cost of equity (Re)8.51%(Rf 4.30% + β 0.77 × ERP 5.50%)

Cost of debt (Rd)4.28%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)92.16%

Debt weight (D/V)7.84%

Results

Current Price$228.05

Implied Near-term FCF Growth9.6%

Historical Revenue Growth7.6%

Historical Earnings Growth11.8%

Base FCF (TTM)$823.70M

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: $3.24

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$66.74

Current Price$228.05

Upside / Downside-70.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.15B

Target EV/EBITDA multipleCurrent: 19.2×

Net Debt($B)Default: $1.22B

Results

Implied Equity Value / share$228.04

Current Price$228.05

Upside / Downside-0.0%

Implied EV$22.13B

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

Mult \ Net Debt	$1.22B	$1.22B	$1.22B	$1.22B	$1.22B
15.2x	$177.78	$177.78	$177.78	$177.78	$177.78
17.2x	$202.91	$202.91	$202.91	$202.91	$202.91
19.2x	$228.04	$228.04	$228.04	$228.04	$228.04
21.2x	$253.17	$253.17	$253.17	$253.17	$253.17
23.2x	$278.30	$278.30	$278.30	$278.30	$278.30

← Overview Financial Statements ← Companies