XYL — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($128.98)
DCF	$65.39	-49.3%
Graham Number	$64.47	-50.0%
Reverse DCF	—	implied g: 17.5%
DDM	$35.43	-72.5%
EV/EBITDA	$129.84	+0.7%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $893.25M

Near-term growth (yrs 1–5)(%)Rev: 6.3% / EPS: 3.0%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.92%

Computed WACC: 9.92%

Cost of equity (Re)10.70%(Rf 4.30% + β 1.16 × 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)92.70%

Debt weight (D/V)7.30%

Results

Intrinsic Value / share$56.46

Current Price$128.98

Upside / Downside-56.2%

Net Debt (used)$996.00M

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

WACC \ Near-term	-1.7%	2.3%	6.3%	10.3%	14.3%
7.0%	$66.38	$80.50	$96.91	$115.88	$137.70
8.0%	$53.69	$65.04	$78.21	$93.41	$110.87
9.0%	$44.90	$54.34	$65.28	$77.88	$92.34
10.0%	$38.46	$46.50	$55.80	$66.51	$78.78
11.0%	$33.53	$40.51	$48.56	$57.83	$68.44

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.92

Book Value / share($)Yahoo: $47.13

Results

Graham Number$64.47

Current Price$128.98

Margin of Safety-50.0%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.92%

Terminal growth rate(%)

Computed WACC: 9.92%

Cost of equity (Re)10.70%(Rf 4.30% + β 1.16 × 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)92.70%

Debt weight (D/V)7.30%

Results

Current Price$128.98

Implied Near-term FCF Growth20.2%

Historical Revenue Growth6.3%

Historical Earnings Growth3.0%

Base FCF (TTM)$893.25M

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: $1.72

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$35.43

Current Price$128.98

Upside / Downside-72.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.89B

Target EV/EBITDA multipleCurrent: 17.2×

Net Debt($B)Default: $996.00M

Results

Implied Equity Value / share$129.84

Current Price$128.98

Upside / Downside+0.7%

Implied EV$32.63B

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

Mult \ Net Debt	-$1.00B	-$4.00M	$996.00M	$2.00B	$3.00B
13.2x	$106.95	$102.85	$98.74	$94.64	$90.53
15.2x	$122.50	$118.40	$114.29	$110.19	$106.08
17.2x	$138.05	$133.95	$129.84	$125.74	$121.63
19.2x	$153.60	$149.50	$145.39	$141.29	$137.18
21.2x	$169.15	$165.05	$160.94	$156.84	$152.73

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