WSM — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($201.34)
DCF	$131.95	-34.5%
Graham Number	$59.17	-70.6%
Reverse DCF	—	implied g: 12.0%
DDM	$54.38	-73.0%
EV/EBITDA	$201.34	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $930.35M

Near-term growth (yrs 1–5)(%)Rev: 4.6% / EPS: 4.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.13%

Computed WACC: 12.13%

Cost of equity (Re)12.87%(Rf 4.30% + β 1.56 × 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)94.25%

Debt weight (D/V)5.75%

Results

Intrinsic Value / share$86.99

Current Price$201.34

Upside / Downside-56.8%

Net Debt (used)$581.10M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$133.13	$161.03	$193.50	$231.07	$274.35
8.0%	$108.57	$131.03	$157.12	$187.28	$221.97
9.0%	$91.56	$110.26	$131.95	$156.99	$185.76
10.0%	$79.07	$95.02	$113.50	$134.80	$159.25
11.0%	$69.50	$83.36	$99.40	$117.85	$139.01

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $9.06

Book Value / share($)Yahoo: $17.18

Results

Graham Number$59.17

Current Price$201.34

Margin of Safety-70.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.13%

Terminal growth rate(%)

Computed WACC: 12.13%

Cost of equity (Re)12.87%(Rf 4.30% + β 1.56 × 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)94.25%

Debt weight (D/V)5.75%

Results

Current Price$201.34

Implied Near-term FCF Growth20.1%

Historical Revenue Growth4.6%

Historical Earnings Growth4.8%

Base FCF (TTM)$930.35M

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: $2.64

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$54.38

Current Price$201.34

Upside / Downside-73.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.70B

Target EV/EBITDA multipleCurrent: 14.5×

Net Debt($B)Default: $581.10M

Results

Implied Equity Value / share$201.34

Current Price$201.34

Upside / Downside-0.0%

Implied EV$24.62B

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

Mult \ Net Debt	-$1.42B	-$418.90M	$581.10M	$1.58B	$2.58B
10.5x	$161.19	$152.81	$144.44	$136.06	$127.68
12.5x	$189.64	$181.26	$172.89	$164.51	$156.13
14.5x	$218.09	$209.71	$201.34	$192.96	$184.58
16.5x	$246.54	$238.16	$229.79	$221.41	$213.03
18.5x	$274.99	$266.61	$258.24	$249.86	$241.48

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