WTW — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($302.12)
DCF	$315.07	+4.3%
Graham Number	$175.24	-42.0%
Reverse DCF	—	implied g: 4.4%
DDM	$79.10	-73.8%
EV/EBITDA	$303.21	+0.4%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.92B

Near-term growth (yrs 1–5)(%)Rev: -3.3% / EPS: -38.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.67%

Computed WACC: 6.67%

Cost of equity (Re)7.72%(Rf 4.30% + β 0.62 × ERP 5.50%)

Cost of debt (Rd)2.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)80.73%

Debt weight (D/V)19.27%

Results

Intrinsic Value / share$515.51

Current Price$302.12

Upside / Downside+70.6%

Net Debt (used)$3.74B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$318.12	$390.40	$474.50	$571.83	$683.93
8.0%	$254.51	$312.69	$380.28	$458.39	$548.26
9.0%	$210.44	$258.88	$315.07	$379.93	$454.46
10.0%	$178.08	$219.41	$267.28	$322.45	$385.78
11.0%	$153.31	$189.22	$230.74	$278.55	$333.36

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $16.27

Book Value / share($)Yahoo: $83.89

Results

Graham Number$175.24

Current Price$302.12

Margin of Safety-42.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.67%

Terminal growth rate(%)

Computed WACC: 6.67%

Cost of equity (Re)7.72%(Rf 4.30% + β 0.62 × ERP 5.50%)

Cost of debt (Rd)2.84%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)80.73%

Debt weight (D/V)19.27%

Results

Current Price$302.12

Implied Near-term FCF Growth-2.6%

Historical Revenue Growth-3.3%

Historical Earnings Growth-38.2%

Base FCF (TTM)$1.92B

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: $3.84

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$79.10

Current Price$302.12

Upside / Downside-73.8%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.63B

Target EV/EBITDA multipleCurrent: 12.4×

Net Debt($B)Default: $3.74B

Results

Implied Equity Value / share$303.21

Current Price$302.12

Upside / Downside+0.4%

Implied EV$32.57B

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

Mult \ Net Debt	$1.74B	$2.74B	$3.74B	$4.74B	$5.74B
8.4x	$213.73	$203.21	$192.70	$182.18	$171.66
10.4x	$268.99	$258.47	$247.96	$237.44	$226.92
12.4x	$324.25	$313.73	$303.21	$292.70	$282.18
14.4x	$379.51	$368.99	$358.47	$347.96	$337.44
16.4x	$434.77	$424.25	$413.73	$403.21	$392.70

← Overview Financial Statements ← Companies