WAB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($263.67)
DCF	$192.58	-27.0%
Graham Number	$100.18	-62.0%
Reverse DCF	—	implied g: 19.7%
DDM	$21.84	-91.7%
EV/EBITDA	$263.96	+0.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.22B

Near-term growth (yrs 1–5)(%)Rev: 14.8% / EPS: -3.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.56%

Computed WACC: 8.56%

Cost of equity (Re)9.68%(Rf 4.30% + β 0.98 × 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)88.37%

Debt weight (D/V)11.63%

Results

Intrinsic Value / share$210.50

Current Price$263.67

Upside / Downside-20.2%

Net Debt (used)$5.17B

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

WACC \ Near-term	6.8%	10.8%	14.8%	18.8%	22.8%
7.0%	$206.49	$251.28	$302.82	$361.84	$429.14
8.0%	$160.91	$196.56	$237.54	$284.43	$337.85
9.0%	$129.49	$158.86	$192.58	$231.13	$275.02
10.0%	$106.57	$131.36	$159.80	$192.29	$229.24
11.0%	$89.13	$110.46	$134.89	$162.78	$194.48

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.83

Book Value / share($)Yahoo: $65.31

Results

Graham Number$100.18

Current Price$263.67

Margin of Safety-62.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.56%

Terminal growth rate(%)

Computed WACC: 8.56%

Cost of equity (Re)9.68%(Rf 4.30% + β 0.98 × 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)88.37%

Debt weight (D/V)11.63%

Results

Current Price$263.67

Implied Near-term FCF Growth18.3%

Historical Revenue Growth14.8%

Historical Earnings Growth-3.8%

Base FCF (TTM)$1.22B

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: $1.06

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$21.84

Current Price$263.67

Upside / Downside-91.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.44B

Target EV/EBITDA multipleCurrent: 20.6×

Net Debt($B)Default: $5.17B

Results

Implied Equity Value / share$263.96

Current Price$263.67

Upside / Downside+0.1%

Implied EV$50.18B

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

Mult \ Net Debt	$3.17B	$4.17B	$5.17B	$6.17B	$7.17B
16.6x	$218.56	$212.70	$206.84	$200.97	$195.11
18.6x	$247.12	$241.26	$235.40	$229.53	$223.67
20.6x	$275.69	$269.82	$263.96	$258.09	$252.23
22.6x	$304.25	$298.38	$292.52	$286.65	$280.79
24.6x	$332.81	$326.94	$321.08	$315.21	$309.35

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