WES — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($42.09)
DCF	$30.26	-28.1%
Graham Number	$25.69	-39.0%
Reverse DCF	—	implied g: 14.7%
DDM	$74.98	+78.2%
EV/EBITDA	$42.46	+0.9%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $794.36M

Near-term growth (yrs 1–5)(%)Rev: 11.1% / EPS: -45.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.87%

Computed WACC: 6.87%

Cost of equity (Re)8.30%(Rf 4.30% + β 0.73 × ERP 5.50%)

Cost of debt (Rd)5.16%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)66.07%

Debt weight (D/V)33.93%

Results

Intrinsic Value / share$56.70

Current Price$42.09

Upside / Downside+34.7%

Net Debt (used)$8.00B

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

WACC \ Near-term	3.1%	7.1%	11.1%	15.1%	19.1%
7.0%	$32.32	$42.54	$54.35	$67.92	$83.46
8.0%	$22.45	$30.62	$40.04	$50.87	$63.24
9.0%	$15.64	$22.39	$30.18	$39.10	$49.30
10.0%	$10.66	$16.38	$22.97	$30.52	$39.13
11.0%	$6.86	$11.80	$17.48	$23.98	$31.39

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.98

Book Value / share($)Yahoo: $9.84

Results

Graham Number$25.69

Current Price$42.09

Margin of Safety-39.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.87%

Terminal growth rate(%)

Computed WACC: 6.87%

Cost of equity (Re)8.30%(Rf 4.30% + β 0.73 × ERP 5.50%)

Cost of debt (Rd)5.16%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)66.07%

Debt weight (D/V)33.93%

Results

Current Price$42.09

Implied Near-term FCF Growth7.7%

Historical Revenue Growth11.1%

Historical Earnings Growth-45.2%

Base FCF (TTM)$794.36M

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: $3.64

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$74.98

Current Price$42.09

Upside / Downside+78.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.27B

Target EV/EBITDA multipleCurrent: 10.9×

Net Debt($B)Default: $8.00B

Results

Implied Equity Value / share$42.46

Current Price$42.09

Upside / Downside+0.9%

Implied EV$24.72B

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

Mult \ Net Debt	$4.00B	$6.00B	$8.00B	$10.00B	$12.00B
6.9x	$29.52	$24.44	$19.36	$14.28	$9.20
8.9x	$41.07	$35.99	$30.91	$25.83	$20.75
10.9x	$52.62	$47.54	$42.46	$37.38	$32.30
12.9x	$64.18	$59.09	$54.01	$48.93	$43.85
14.9x	$75.73	$70.65	$65.57	$60.49	$55.41

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