ZBH — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($99.49)
DCF	$134.15	+34.8%
Graham Number	$72.03	-27.6%
Reverse DCF	—	implied g: 7.0%
DDM	$19.78	-80.1%
EV/EBITDA	$99.53	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $1.35B

Near-term growth (yrs 1–5)(%)Rev: 10.9% / EPS: -40.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.46%

Computed WACC: 5.46%

Cost of equity (Re)7.64%(Rf 4.30% + β 0.61 × 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)71.46%

Debt weight (D/V)28.54%

Results

Intrinsic Value / share$355.99

Current Price$99.49

Upside / Downside+257.8%

Net Debt (used)$7.25B

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

WACC \ Near-term	2.9%	6.9%	10.9%	14.9%	18.9%
7.0%	$141.60	$176.34	$216.49	$262.65	$315.50
8.0%	$108.12	$135.89	$167.93	$204.74	$246.84
9.0%	$85.01	$107.97	$134.44	$164.81	$199.51
10.0%	$68.11	$87.57	$109.97	$135.65	$164.97
11.0%	$55.23	$72.02	$91.34	$113.46	$138.69

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $3.55

Book Value / share($)Yahoo: $64.95

Results

Graham Number$72.03

Current Price$99.49

Margin of Safety-27.6%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.46%

Terminal growth rate(%)

Computed WACC: 5.46%

Cost of equity (Re)7.64%(Rf 4.30% + β 0.61 × 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)71.46%

Debt weight (D/V)28.54%

Results

Current Price$99.49

Implied Near-term FCF Growth-5.1%

Historical Revenue Growth10.9%

Historical Earnings Growth-40.8%

Base FCF (TTM)$1.35B

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: $0.96

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$19.78

Current Price$99.49

Upside / Downside-80.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.50B

Target EV/EBITDA multipleCurrent: 10.7×

Net Debt($B)Default: $7.25B

Results

Implied Equity Value / share$99.53

Current Price$99.49

Upside / Downside+0.0%

Implied EV$26.73B

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

Mult \ Net Debt	$3.25B	$5.25B	$7.25B	$9.25B	$11.25B
6.7x	$68.95	$58.73	$48.51	$38.29	$28.07
8.7x	$94.46	$84.24	$74.02	$63.80	$53.57
10.7x	$119.97	$109.75	$99.53	$89.31	$79.08
12.7x	$145.48	$135.26	$125.04	$114.81	$104.59
14.7x	$170.99	$160.77	$150.54	$140.32	$130.10

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