WMG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($28.11)
DCF	$93.49	+232.6%
Graham Number	$4.21	-85.0%
Reverse DCF	—	implied g: -3.0%
DDM	$15.66	-44.3%
EV/EBITDA	$101.93	+262.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $731.00M

Near-term growth (yrs 1–5)(%)Rev: 10.4% / EPS: -25.9%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.36%

Computed WACC: 9.36%

Cost of equity (Re)11.25%(Rf 4.30% + β 1.26 × ERP 5.50%)

Cost of debt (Rd)4.22%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)76.12%

Debt weight (D/V)23.88%

Results

Intrinsic Value / share$86.79

Current Price$28.11

Upside / Downside+208.8%

Net Debt (used)$3.86B

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

WACC \ Near-term	2.4%	6.4%	10.4%	14.4%	18.4%
7.0%	$98.14	$122.41	$150.46	$182.74	$219.70
8.0%	$74.94	$94.34	$116.75	$142.50	$171.96
9.0%	$58.92	$74.97	$93.49	$114.75	$139.05
10.0%	$47.19	$60.81	$76.49	$94.47	$115.02
11.0%	$38.25	$50.01	$63.54	$79.04	$96.73

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $0.57

Book Value / share($)Yahoo: $1.38

Results

Graham Number$4.21

Current Price$28.11

Margin of Safety-85.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.36%

Terminal growth rate(%)

Computed WACC: 9.36%

Cost of equity (Re)11.25%(Rf 4.30% + β 1.26 × ERP 5.50%)

Cost of debt (Rd)4.22%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)76.12%

Debt weight (D/V)23.88%

Results

Current Price$28.11

Implied Near-term FCF Growth-2.2%

Historical Revenue Growth10.4%

Historical Earnings Growth-25.9%

Base FCF (TTM)$731.00M

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: $0.76

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$15.66

Current Price$28.11

Upside / Downside-44.3%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.48B

Target EV/EBITDA multipleCurrent: 12.7×

Net Debt($B)Default: $3.86B

Results

Implied Equity Value / share$101.93

Current Price$28.11

Upside / Downside+262.6%

Implied EV$18.84B

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

Mult \ Net Debt	$1.86B	$2.86B	$3.86B	$4.86B	$5.86B
8.7x	$75.23	$68.43	$61.62	$54.82	$48.01
10.7x	$95.39	$88.58	$81.78	$74.97	$68.17
12.7x	$115.54	$108.74	$101.93	$95.13	$88.32
14.7x	$135.69	$128.89	$122.09	$115.28	$108.48
16.7x	$155.85	$149.04	$142.24	$135.44	$128.63

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