WCN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($173.16)
DCF	$44.56	-74.3%
Graham Number	$55.01	-68.2%
Reverse DCF	—	implied g: 21.6%
DDM	$27.40	-84.2%
EV/EBITDA	$173.16	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.17B

Near-term growth (yrs 1–5)(%)Rev: 5.0% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.26%

Computed WACC: 6.26%

Cost of equity (Re)7.56%(Rf 4.30% + β 0.59 × 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)82.88%

Debt weight (D/V)17.12%

Results

Intrinsic Value / share$103.69

Current Price$173.16

Upside / Downside-40.1%

Net Debt (used)$9.10B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$45.25	$61.60	$80.62	$102.63	$127.98
8.0%	$30.86	$44.02	$59.31	$76.97	$97.30
9.0%	$20.89	$31.85	$44.56	$59.23	$76.08
10.0%	$13.58	$22.92	$33.75	$46.23	$60.55
11.0%	$7.97	$16.09	$25.49	$36.30	$48.69

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.17

Book Value / share($)Yahoo: $32.26

Results

Graham Number$55.01

Current Price$173.16

Margin of Safety-68.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.26%

Terminal growth rate(%)

Computed WACC: 6.26%

Cost of equity (Re)7.56%(Rf 4.30% + β 0.59 × 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)82.88%

Debt weight (D/V)17.12%

Results

Current Price$173.16

Implied Near-term FCF Growth11.4%

Historical Revenue Growth5.0%

Historical Earnings Growth—

Base FCF (TTM)$1.17B

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: $1.33

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$27.40

Current Price$173.16

Upside / Downside-84.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.01B

Target EV/EBITDA multipleCurrent: 17.7×

Net Debt($B)Default: $9.10B

Results

Implied Equity Value / share$173.16

Current Price$173.16

Upside / Downside+0.0%

Implied EV$53.37B

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

Mult \ Net Debt	$5.10B	$7.10B	$9.10B	$11.10B	$13.10B
13.7x	$141.72	$133.89	$126.07	$118.25	$110.42
15.7x	$165.26	$157.44	$149.62	$141.79	$133.97
17.7x	$188.81	$180.99	$173.16	$165.34	$157.52
19.7x	$212.36	$204.53	$196.71	$188.89	$181.06
21.7x	$235.90	$228.08	$220.26	$212.43	$204.61

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