WEC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($116.96)
DCF	$-233.48	-299.6%
Graham Number	$67.28	-42.5%
Reverse DCF	—	—
DDM	$78.49	-32.9%
EV/EBITDA	$118.34	+1.2%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$2.14B

Near-term growth (yrs 1–5)(%)Rev: 11.1% / EPS: -32.5%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.73%

Computed WACC: 4.73%

Cost of equity (Re)7.51%(Rf 4.30% + β 0.58 × 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)62.96%

Debt weight (D/V)37.04%

Results

Intrinsic Value / share$-574.26

Current Price$116.96

Upside / Downside-591.0%

Net Debt (used)$22.36B

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

WACC \ Near-term	3.1%	7.1%	11.1%	15.1%	19.1%
7.0%	$-240.20	$-273.50	$-311.96	$-356.17	$-406.78
8.0%	$-208.06	$-234.66	$-265.36	$-300.61	$-340.92
9.0%	$-185.86	$-207.86	$-233.21	$-262.29	$-295.52
10.0%	$-169.63	$-188.27	$-209.73	$-234.32	$-262.39
11.0%	$-157.25	$-173.34	$-191.84	$-213.03	$-237.18

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $4.81

Book Value / share($)Yahoo: $41.83

Results

Graham Number$67.28

Current Price$116.96

Margin of Safety-42.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.73%

Terminal growth rate(%)

Computed WACC: 4.73%

Cost of equity (Re)7.51%(Rf 4.30% + β 0.58 × 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)62.96%

Debt weight (D/V)37.04%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$116.96

Implied Near-term FCF Growth—

Historical Revenue Growth11.1%

Historical Earnings Growth-32.5%

Base FCF (TTM)-$2.14B

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: $3.81

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$78.49

Current Price$116.96

Upside / Downside-32.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.87B

Target EV/EBITDA multipleCurrent: 15.7×

Net Debt($B)Default: $22.36B

Results

Implied Equity Value / share$118.34

Current Price$116.96

Upside / Downside+1.2%

Implied EV$60.88B

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

Mult \ Net Debt	$10.36B	$16.36B	$22.36B	$28.36B	$34.36B
11.7x	$107.67	$89.24	$70.80	$52.37	$33.93
13.7x	$131.44	$113.01	$94.57	$76.14	$57.70
15.7x	$155.21	$136.77	$118.34	$99.90	$81.47
17.7x	$178.98	$160.54	$142.11	$123.67	$105.24
19.7x	$202.74	$184.31	$165.87	$147.44	$129.00

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