WM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($240.84)
DCF	$160.59	-33.3%
Graham Number	$61.14	-74.6%
Reverse DCF	—	implied g: 29.2%
DDM	$67.98	-71.8%
EV/EBITDA	$240.83	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.73B

Near-term growth (yrs 1–5)(%)Rev: 7.1% / EPS: 23.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.04%

Computed WACC: 6.04%

Cost of equity (Re)7.52%(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)80.24%

Debt weight (D/V)19.76%

Results

Intrinsic Value / share$378.80

Current Price$240.84

Upside / Downside+57.3%

Net Debt (used)$23.72B

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

WACC \ Near-term	15.6%	19.6%	23.6%	27.6%	31.6%
7.0%	$183.85	$226.90	$275.99	$331.71	$394.74
8.0%	$134.82	$168.82	$207.56	$251.51	$301.20
9.0%	$101.15	$128.94	$160.59	$196.48	$237.02
10.0%	$76.67	$99.96	$126.47	$156.50	$190.41
11.0%	$58.13	$78.02	$100.63	$126.25	$155.15

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $6.70

Book Value / share($)Yahoo: $24.79

Results

Graham Number$61.14

Current Price$240.84

Margin of Safety-74.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.04%

Terminal growth rate(%)

Computed WACC: 6.04%

Cost of equity (Re)7.52%(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)80.24%

Debt weight (D/V)19.76%

Results

Current Price$240.84

Implied Near-term FCF Growth17.3%

Historical Revenue Growth7.1%

Historical Earnings Growth23.6%

Base FCF (TTM)$1.73B

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: $3.30

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$67.98

Current Price$240.84

Upside / Downside-71.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $7.56B

Target EV/EBITDA multipleCurrent: 16.0×

Net Debt($B)Default: $23.72B

Results

Implied Equity Value / share$240.83

Current Price$240.84

Upside / Downside-0.0%

Implied EV$120.85B

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

Mult \ Net Debt	$11.72B	$17.72B	$23.72B	$29.72B	$35.72B
12.0x	$195.62	$180.75	$165.87	$150.99	$136.12
14.0x	$233.10	$218.23	$203.35	$188.48	$173.60
16.0x	$270.59	$255.71	$240.83	$225.96	$211.08
18.0x	$308.07	$293.19	$278.32	$263.44	$248.57
20.0x	$345.55	$330.68	$315.80	$300.92	$286.05

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