VZ — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($49.98)
DCF	$32.46	-35.0%
Graham Number	$47.51	-4.9%
Reverse DCF	—	implied g: 8.7%
DDM	$58.30	+16.6%
EV/EBITDA	$50.28	+0.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $17.24B

Near-term growth (yrs 1–5)(%)Rev: 2.0% / EPS: -53.3%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 3.22%

Computed WACC: 3.22%

Cost of equity (Re)6.04%(Rf 4.30% + β 0.32 × 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)53.28%

Debt weight (D/V)46.72%

Results

Intrinsic Value / share$616.11

Current Price$49.98

Upside / Downside+1132.7%

Net Debt (used)$165.77B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$33.08	$47.72	$64.75	$84.46	$107.16
8.0%	$20.20	$31.98	$45.67	$61.49	$79.68
9.0%	$11.28	$21.09	$32.46	$45.60	$60.69
10.0%	$4.72	$13.09	$22.79	$33.96	$46.78
11.0%	$-0.29	$6.98	$15.39	$25.07	$36.17

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.05

Book Value / share($)Yahoo: $24.77

Results

Graham Number$47.51

Current Price$49.98

Margin of Safety-4.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 3.22%

Terminal growth rate(%)

Computed WACC: 3.22%

Cost of equity (Re)6.04%(Rf 4.30% + β 0.32 × 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)53.28%

Debt weight (D/V)46.72%

Results

Current Price$49.98

Implied Near-term FCF Growth-20.0%

Historical Revenue Growth2.0%

Historical Earnings Growth-53.3%

Base FCF (TTM)$17.24B

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: $2.83

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$58.30

Current Price$49.98

Upside / Downside+16.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $50.00B

Target EV/EBITDA multipleCurrent: 7.6×

Net Debt($B)Default: $165.77B

Results

Implied Equity Value / share$50.28

Current Price$49.98

Upside / Downside+0.6%

Implied EV$377.83B

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

Mult \ Net Debt	$83.77B	$124.77B	$165.77B	$206.77B	$247.77B
3.6x	$22.30	$12.58	$2.86	$-6.86	$-16.58
5.6x	$46.01	$36.29	$26.57	$16.85	$7.13
7.6x	$69.72	$60.00	$50.28	$40.56	$30.84
9.6x	$93.43	$83.71	$73.99	$64.27	$54.55
11.6x	$117.14	$107.42	$97.70	$87.97	$78.25

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