WERN — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($34.60)
DCF	$-21.03	-160.8%
Graham Number	—	—
Reverse DCF	—	—
DDM	$11.54	-66.7%
EV/EBITDA	$35.07	+1.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$29.91M

Near-term growth (yrs 1–5)(%)Rev: -2.3% / EPS: —

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.37%

Computed WACC: 7.37%

Cost of equity (Re)10.20%(Rf 4.30% + β 1.07 × 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)72.29%

Debt weight (D/V)27.71%

Results

Intrinsic Value / share$-24.00

Current Price$34.60

Upside / Downside-169.4%

Net Debt (used)$734.00M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$-21.11	$-22.89	$-24.98	$-27.38	$-30.16
8.0%	$-19.53	$-20.97	$-22.64	$-24.58	$-26.80
9.0%	$-18.44	$-19.64	$-21.03	$-22.64	$-24.48
10.0%	$-17.64	$-18.66	$-19.85	$-21.21	$-22.78
11.0%	$-17.03	$-17.92	$-18.94	$-20.13	$-21.48

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $-0.24

Book Value / share($)Yahoo: $22.76

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$34.60

Margin of Safety—

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.37%

Terminal growth rate(%)

Computed WACC: 7.37%

Cost of equity (Re)10.20%(Rf 4.30% + β 1.07 × 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)72.29%

Debt weight (D/V)27.71%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$34.60

Implied Near-term FCF Growth—

Historical Revenue Growth-2.3%

Historical Earnings Growth—

Base FCF (TTM)-$29.91M

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: $0.56

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$11.54

Current Price$34.60

Upside / Downside-66.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $319.11M

Target EV/EBITDA multipleCurrent: 8.9×

Net Debt($B)Default: $734.00M

Results

Implied Equity Value / share$35.07

Current Price$34.60

Upside / Downside+1.4%

Implied EV$2.83B

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

Mult \ Net Debt	-$1.27B	-$266.00M	$734.00M	$1.73B	$2.73B
4.9x	$47.16	$30.45	$13.75	$-2.95	$-19.65
6.9x	$57.82	$41.11	$24.41	$7.71	$-8.99
8.9x	$68.48	$51.77	$35.07	$18.37	$1.67
10.9x	$79.14	$62.44	$45.73	$29.03	$12.33
12.9x	$89.80	$73.10	$56.39	$39.69	$22.99

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