WAT — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($307.23)
DCF	$75.21	-75.5%
Graham Number	$102.00	-66.8%
Reverse DCF	—	implied g: 30.0%
DDM	—	—
EV/EBITDA	$307.23	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $427.16M

Near-term growth (yrs 1–5)(%)Rev: 6.8% / EPS: -3.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 10.29%

Computed WACC: 10.29%

Cost of equity (Re)10.78%(Rf 4.30% + β 1.18 × ERP 5.50%)

Cost of debt (Rd)0.94%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.13%

Debt weight (D/V)4.87%

Results

Intrinsic Value / share$60.72

Current Price$307.23

Upside / Downside-80.2%

Net Debt (used)$956.13M

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

WACC \ Near-term	-1.2%	2.8%	6.8%	10.8%	14.8%
7.0%	$76.81	$94.11	$114.19	$137.39	$164.06
8.0%	$61.14	$75.04	$91.14	$109.72	$131.06
9.0%	$50.30	$61.84	$75.21	$90.60	$108.26
10.0%	$42.35	$52.18	$63.54	$76.61	$91.59
11.0%	$36.27	$44.79	$54.63	$65.94	$78.88

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.75

Book Value / share($)Yahoo: $43.01

Results

Graham Number$102.00

Current Price$307.23

Margin of Safety-66.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 10.29%

Terminal growth rate(%)

Computed WACC: 10.29%

Cost of equity (Re)10.78%(Rf 4.30% + β 1.18 × ERP 5.50%)

Cost of debt (Rd)0.94%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)95.13%

Debt weight (D/V)4.87%

Results

Current Price$307.23

Implied Near-term FCF Growth34.2%

Historical Revenue Growth6.8%

Historical Earnings Growth-3.1%

Base FCF (TTM)$427.16M

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: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$307.23

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.09B

Target EV/EBITDA multipleCurrent: 28.4×

Net Debt($B)Default: $956.13M

Results

Implied Equity Value / share$307.23

Current Price$307.23

Upside / Downside+0.0%

Implied EV$31.10B

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

Mult \ Net Debt	-$1.04B	-$43.87M	$956.13M	$1.96B	$2.96B
24.4x	$283.01	$272.82	$262.62	$252.43	$242.24
26.4x	$305.31	$295.12	$284.93	$274.73	$264.54
28.4x	$327.62	$317.43	$307.23	$297.04	$286.84
30.4x	$349.92	$339.73	$329.54	$319.34	$309.15
32.4x	$372.23	$362.03	$351.84	$341.65	$331.45

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