WSO — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($410.87)
DCF	$153.53	-62.6%
Graham Number	$137.54	-66.5%
Reverse DCF	—	implied g: 22.7%
DDM	$247.20	-39.8%
EV/EBITDA	$458.98	+11.7%

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)97.21%

Debt weight (D/V)2.79%

Results

Intrinsic Value / share$141.03

Current Price$410.87

Upside / Downside-65.7%

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%	$154.78	$184.61	$219.31	$259.47	$305.73
8.0%	$128.54	$152.54	$180.43	$212.66	$249.75
9.0%	$110.35	$130.34	$153.53	$180.29	$211.04
10.0%	$97.00	$114.05	$133.80	$156.57	$182.70
11.0%	$86.78	$101.59	$118.73	$138.46	$161.07

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $11.46

Book Value / share($)Yahoo: $73.36

Results

Graham Number$137.54

Current Price$410.87

Margin of Safety-66.5%

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)97.21%

Debt weight (D/V)2.79%

Results

Current Price$410.87

Implied Near-term FCF Growth24.5%

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$410.87

Upside / Downside-39.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $737.89M

Target EV/EBITDA multipleCurrent: 21.4×

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

Results

Implied Equity Value / share$458.98

Current Price$410.87

Upside / Downside+11.7%

Implied EV$15.77B

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

Mult \ Net Debt	-$2.25B	-$1.25B	-$254.50M	$745.50M	$1.75B
17.4x	$431.73	$403.10	$374.46	$345.83	$317.19
19.4x	$473.99	$445.35	$416.72	$388.09	$359.45
21.4x	$516.24	$487.61	$458.98	$430.34	$401.71
23.4x	$558.50	$529.87	$501.23	$472.60	$443.97
25.4x	$600.76	$572.12	$543.49	$514.86	$486.22

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