WMB — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($74.72)
DCF	$-86.35	-215.6%
Graham Number	$22.43	-70.0%
Reverse DCF	—	—
DDM	$43.26	-42.1%
EV/EBITDA	$76.51	+2.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$353.50M

Near-term growth (yrs 1–5)(%)Rev: 8.7% / EPS: 50.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.01%

Computed WACC: 6.01%

Cost of equity (Re)7.96%(Rf 4.30% + β 0.67 × 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)75.55%

Debt weight (D/V)24.45%

Results

Intrinsic Value / share$-157.13

Current Price$74.72

Upside / Downside-310.3%

Net Debt (used)$29.48B

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

WACC \ Near-term	42.8%	46.8%	50.8%	54.8%	58.8%
7.0%	$-99.64	$-110.66	$-122.94	$-136.58	$-151.70
8.0%	$-83.07	$-91.64	$-101.19	$-111.79	$-123.54
9.0%	$-71.77	$-78.67	$-86.35	$-94.89	$-104.34
10.0%	$-63.61	$-69.31	$-75.65	$-82.69	$-90.49
11.0%	$-57.48	$-62.27	$-67.61	$-73.53	$-80.08

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.14

Book Value / share($)Yahoo: $10.45

Results

Graham Number$22.43

Current Price$74.72

Margin of Safety-70.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.01%

Terminal growth rate(%)

Computed WACC: 6.01%

Cost of equity (Re)7.96%(Rf 4.30% + β 0.67 × 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)75.55%

Debt weight (D/V)24.45%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$74.72

Implied Near-term FCF Growth—

Historical Revenue Growth8.7%

Historical Earnings Growth50.8%

Base FCF (TTM)-$353.50M

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: $2.10

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$43.26

Current Price$74.72

Upside / Downside-42.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.78B

Target EV/EBITDA multipleCurrent: 18.1×

Net Debt($B)Default: $29.48B

Results

Implied Equity Value / share$76.51

Current Price$74.72

Upside / Downside+2.4%

Implied EV$122.98B

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

Mult \ Net Debt	$15.48B	$22.48B	$29.48B	$36.48B	$43.48B
14.1x	$65.79	$60.06	$54.33	$48.60	$42.87
16.1x	$76.88	$71.15	$65.42	$59.69	$53.97
18.1x	$87.97	$82.24	$76.51	$70.79	$65.06
20.1x	$99.06	$93.33	$87.61	$81.88	$76.15
22.1x	$110.15	$104.43	$98.70	$92.97	$87.24

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