WDC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($279.70)
DCF	$201.92	-27.8%
Graham Number	$70.53	-74.8%
Reverse DCF	—	implied g: 10.6%
DDM	$10.30	-96.3%
EV/EBITDA	$118.82	-57.5%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $3.90B

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

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 13.74%

Computed WACC: 13.74%

Cost of equity (Re)14.41%(Rf 4.30% + β 1.84 × 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)95.30%

Debt weight (D/V)4.70%

Results

Intrinsic Value / share$115.85

Current Price$279.70

Upside / Downside-58.6%

Net Debt (used)$0

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$203.65	$244.84	$292.75	$348.20	$412.07
8.0%	$167.42	$200.56	$239.07	$283.57	$334.77
9.0%	$142.31	$169.91	$201.92	$238.87	$281.33
10.0%	$123.87	$147.42	$174.69	$206.13	$242.21
11.0%	$109.76	$130.21	$153.87	$181.11	$212.34

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $10.57

Book Value / share($)Yahoo: $20.91

Results

Graham Number$70.53

Current Price$279.70

Margin of Safety-74.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 13.74%

Terminal growth rate(%)

Computed WACC: 13.74%

Cost of equity (Re)14.41%(Rf 4.30% + β 1.84 × 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)95.30%

Debt weight (D/V)4.70%

Results

Current Price$279.70

Implied Near-term FCF Growth22.0%

Historical Revenue Growth—

Historical Earnings Growth—

Base FCF (TTM)$3.90B

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: $0.50

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$10.30

Current Price$279.70

Upside / Downside-96.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.36B

Target EV/EBITDA multipleCurrent: —×

Net Debt($B)Default: $0

Results

Implied Equity Value / share$118.82

Current Price$279.70

Upside / Downside-57.5%

Implied EV$40.28B

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

Mult \ Net Debt	-$2.00B	-$1.00B	$0	$1.00B	$2.00B
8.0x	$85.11	$82.16	$79.21	$76.26	$73.31
10.0x	$104.91	$101.96	$99.02	$96.07	$93.12
12.0x	$124.72	$121.77	$118.82	$115.87	$112.92
14.0x	$144.52	$141.57	$138.62	$135.67	$132.72
16.0x	$164.32	$161.37	$158.42	$155.48	$152.53

← Overview Financial Statements ← Companies