WU — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($9.63)
DCF	$16.61	+72.5%
Graham Number	$10.19	+5.8%
Reverse DCF	—	implied g: -1.3%
DDM	$19.36	+101.1%
EV/EBITDA	$9.63	-0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $403.05M

Near-term growth (yrs 1–5)(%)Rev: -4.7% / EPS: -69.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.55%

Computed WACC: 5.55%

Cost of equity (Re)7.25%(Rf 4.30% + β 0.54 × ERP 5.50%)

Cost of debt (Rd)4.90%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)49.65%

Debt weight (D/V)50.35%

Results

Intrinsic Value / share$42.46

Current Price$9.63

Upside / Downside+341.0%

Net Debt (used)$1.87B

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

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$16.81	$21.41	$26.77	$32.97	$40.11
8.0%	$12.75	$16.46	$20.76	$25.74	$31.46
9.0%	$9.95	$13.03	$16.61	$20.74	$25.49
10.0%	$7.89	$10.52	$13.57	$17.08	$21.12
11.0%	$6.31	$8.59	$11.24	$14.29	$17.78

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.52

Book Value / share($)Yahoo: $3.03

Results

Graham Number$10.19

Current Price$9.63

Margin of Safety+5.8%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.55%

Terminal growth rate(%)

Computed WACC: 5.55%

Cost of equity (Re)7.25%(Rf 4.30% + β 0.54 × ERP 5.50%)

Cost of debt (Rd)4.90%(interest expense ÷ avg debt (SEC))

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

Equity weight (E/V)49.65%

Debt weight (D/V)50.35%

Results

Current Price$9.63

Implied Near-term FCF Growth-11.9%

Historical Revenue Growth-4.7%

Historical Earnings Growth-69.2%

Base FCF (TTM)$403.05M

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: $0.94

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$19.36

Current Price$9.63

Upside / Downside+101.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $933.60M

Target EV/EBITDA multipleCurrent: 5.2×

Net Debt($B)Default: $1.87B

Results

Implied Equity Value / share$9.63

Current Price$9.63

Upside / Downside-0.0%

Implied EV$4.89B

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

Mult \ Net Debt	$1.87B	$1.87B	$1.87B	$1.87B	$1.87B
1.2x	$-2.28	$-2.28	$-2.28	$-2.28	$-2.28
3.2x	$3.67	$3.67	$3.67	$3.67	$3.67
5.2x	$9.63	$9.63	$9.63	$9.63	$9.63
7.2x	$15.59	$15.59	$15.59	$15.59	$15.59
9.2x	$21.54	$21.54	$21.54	$21.54	$21.54

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