WTRG — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($39.73)
DCF	$-117.35	-395.3%
Graham Number	$34.63	-12.9%
Reverse DCF	—	—
DDM	$28.22	-29.0%
EV/EBITDA	$40.15	+1.1%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: -$762.49M

Near-term growth (yrs 1–5)(%)Rev: 15.7% / EPS: -30.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.42%

Computed WACC: 6.42%

Cost of equity (Re)8.68%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)4.25%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)57.44%

Debt weight (D/V)42.56%

Results

Intrinsic Value / share$-182.12

Current Price$39.73

Upside / Downside-558.3%

Net Debt (used)$8.30B

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

WACC \ Near-term	7.7%	11.7%	15.7%	19.7%	23.7%
7.0%	$-123.08	$-140.70	$-160.95	$-184.12	$-210.52
8.0%	$-104.93	$-118.95	$-135.04	$-153.43	$-174.37
9.0%	$-92.44	$-103.97	$-117.20	$-132.31	$-149.50
10.0%	$-83.32	$-93.05	$-104.20	$-116.92	$-131.39
11.0%	$-76.38	$-84.75	$-94.32	$-105.24	$-117.64

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $2.20

Book Value / share($)Yahoo: $24.22

Results

Graham Number$34.63

Current Price$39.73

Margin of Safety-12.9%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.42%

Terminal growth rate(%)

Computed WACC: 6.42%

Cost of equity (Re)8.68%(Rf 4.30% + β 0.80 × ERP 5.50%)

Cost of debt (Rd)4.25%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)57.44%

Debt weight (D/V)42.56%

Results

Reverse DCF requires positive TTM free cash flow.

Current Price$39.73

Implied Near-term FCF Growth—

Historical Revenue Growth15.7%

Historical Earnings Growth-30.0%

Base FCF (TTM)-$762.49M

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: $1.37

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$28.22

Current Price$39.73

Upside / Downside-29.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.33B

Target EV/EBITDA multipleCurrent: 14.8×

Net Debt($B)Default: $8.30B

Results

Implied Equity Value / share$40.15

Current Price$39.73

Upside / Downside+1.1%

Implied EV$19.67B

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

Mult \ Net Debt	$4.30B	$6.30B	$8.30B	$10.30B	$12.30B
10.8x	$35.47	$28.40	$21.34	$14.27	$7.21
12.8x	$44.88	$37.81	$30.75	$23.68	$16.62
14.8x	$54.29	$47.22	$40.15	$33.09	$26.02
16.8x	$63.69	$56.63	$49.56	$42.50	$35.43
18.8x	$73.10	$66.04	$58.97	$51.91	$44.84

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