WPC — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($74.62)
DCF	$267675.60	+358618.3%
Graham Number	$41.94	-43.8%
Reverse DCF	—	implied g: 19.9%
DDM	$75.81	+1.6%
EV/EBITDA	$72.69	-2.6%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $615.27M

Near-term growth (yrs 1–5)(%)Rev: 8.8% / EPS: 218.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.51%

Computed WACC: 6.51%

Cost of equity (Re)8.62%(Rf 4.30% + β 0.79 × ERP 5.50%)

Cost of debt (Rd)3.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)65.45%

Debt weight (D/V)34.55%

Results

Intrinsic Value / share$520944.96

Current Price$74.62

Upside / Downside+698030.5%

Net Debt (used)$8.72B

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

WACC \ Near-term	210.1%	214.1%	218.1%	222.1%	226.1%
7.0%	$394014.25	$420087.22	$447522.47	$476372.70	$506691.94
8.0%	$299346.08	$319154.01	$339996.82	$361914.56	$384948.26
9.0%	$235397.47	$250973.39	$267363.05	$284597.93	$302710.30
10.0%	$189755.27	$202310.71	$215522.05	$229414.66	$244014.57
11.0%	$155858.82	$166171.11	$177022.09	$188432.59	$200423.98

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.11

Book Value / share($)Yahoo: $37.05

Results

Graham Number$41.94

Current Price$74.62

Margin of Safety-43.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.51%

Terminal growth rate(%)

Computed WACC: 6.51%

Cost of equity (Re)8.62%(Rf 4.30% + β 0.79 × ERP 5.50%)

Cost of debt (Rd)3.19%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)65.45%

Debt weight (D/V)34.55%

Results

Current Price$74.62

Implied Near-term FCF Growth10.9%

Historical Revenue Growth8.8%

Historical Earnings Growth218.1%

Base FCF (TTM)$615.27M

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: $3.68

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$75.81

Current Price$74.62

Upside / Downside+1.6%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.41B

Target EV/EBITDA multipleCurrent: 17.7×

Net Debt($B)Default: $8.72B

Results

Implied Equity Value / share$72.69

Current Price$74.62

Upside / Downside-2.6%

Implied EV$25.08B

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

Mult \ Net Debt	$4.72B	$6.72B	$8.72B	$10.72B	$12.72B
13.7x	$65.33	$56.45	$47.56	$38.68	$29.80
15.7x	$77.89	$69.01	$60.13	$51.25	$42.36
17.7x	$90.46	$81.57	$72.69	$63.81	$54.93
19.7x	$103.02	$94.14	$85.26	$76.37	$67.49
21.7x	$115.59	$106.70	$97.82	$88.94	$80.06

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