WSO-B — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($419.25)
DCF	$951.57	+127.0%
Graham Number	$137.48	-67.2%
Reverse DCF	—	implied g: -10.0%
DDM	$247.20	-41.0%
EV/EBITDA	$2901.08	+592.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $290.91M

Near-term growth (yrs 1–5)(%)Rev: -10.0% / EPS: -26.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.60%

Computed WACC: 9.60%

Cost of equity (Re)9.87%(Rf 4.30% + β 1.01 × 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)97.26%

Debt weight (D/V)2.74%

Results

Intrinsic Value / share$874.09

Current Price$419.25

Upside / Downside+108.5%

Net Debt (used)-$254.50M

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$959.36	$1144.22	$1359.30	$1608.22	$1894.93
8.0%	$796.69	$945.48	$1118.33	$1318.11	$1547.94
9.0%	$683.96	$807.86	$951.57	$1117.45	$1308.06
10.0%	$601.21	$706.91	$829.33	$970.45	$1132.41
11.0%	$537.86	$629.69	$735.89	$858.16	$998.33

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $11.45

Book Value / share($)Yahoo: $73.36

Results

Graham Number$137.48

Current Price$419.25

Margin of Safety-67.2%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.60%

Terminal growth rate(%)

Computed WACC: 9.60%

Cost of equity (Re)9.87%(Rf 4.30% + β 1.01 × 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)97.26%

Debt weight (D/V)2.74%

Results

Current Price$419.25

Implied Near-term FCF Growth-8.8%

Historical Revenue Growth-10.0%

Historical Earnings Growth-26.0%

Base FCF (TTM)$290.91M

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: $12.00

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$247.20

Current Price$419.25

Upside / Downside-41.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $737.89M

Target EV/EBITDA multipleCurrent: 21.8×

Net Debt($B)Default: -$254.50M

Results

Implied Equity Value / share$2901.08

Current Price$419.25

Upside / Downside+592.0%

Implied EV$16.09B

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

Mult \ Net Debt	-$2.25B	-$1.25B	-$254.50M	$745.50M	$1.75B
17.8x	$2732.20	$2554.73	$2377.25	$2199.78	$2022.30
19.8x	$2994.11	$2816.64	$2639.17	$2461.69	$2284.22
21.8x	$3256.03	$3078.56	$2901.08	$2723.61	$2546.13
23.8x	$3517.94	$3340.47	$3163.00	$2985.52	$2808.05
25.8x	$3779.86	$3602.38	$3424.91	$3247.44	$3069.96

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