ZWS — Valuation Models

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

Valuation Summary

Model	Intrinsic Value	vs Price ($50.96)
DCF	$50.85	-0.2%
Graham Number	$15.56	-69.5%
Reverse DCF	—	implied g: 14.7%
DDM	$9.06	-82.2%
EV/EBITDA	$50.96	+0.0%

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

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $283.05M

Near-term growth (yrs 1–5)(%)Rev: 9.8% / EPS: 14.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 8.14%

Computed WACC: 8.14%

Cost of equity (Re)8.67%(Rf 4.30% + β 0.79 × 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)93.91%

Debt weight (D/V)6.09%

Results

Intrinsic Value / share$59.59

Current Price$50.96

Upside / Downside+16.9%

Net Debt (used)$252.70M

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

WACC \ Near-term	6.7%	10.7%	14.7%	18.7%	22.7%
7.0%	$53.99	$64.49	$76.58	$90.43	$106.21
8.0%	$43.32	$51.68	$61.29	$72.29	$84.83
9.0%	$35.96	$42.85	$50.76	$59.81	$70.11
10.0%	$30.59	$36.41	$43.08	$50.71	$59.38
11.0%	$26.51	$31.51	$37.25	$43.79	$51.23

2 — Graham Number

Assumptions

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

EPS (trailing)($)Yahoo: $1.12

Book Value / share($)Yahoo: $9.60

Results

Graham Number$15.56

Current Price$50.96

Margin of Safety-69.5%

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

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 8.14%

Terminal growth rate(%)

Computed WACC: 8.14%

Cost of equity (Re)8.67%(Rf 4.30% + β 0.79 × 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)93.91%

Debt weight (D/V)6.09%

Results

Current Price$50.96

Implied Near-term FCF Growth12.1%

Historical Revenue Growth9.8%

Historical Earnings Growth14.7%

Base FCF (TTM)$283.05M

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: $0.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$9.06

Current Price$50.96

Upside / Downside-82.2%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $375.30M

Target EV/EBITDA multipleCurrent: 23.3×

Net Debt($B)Default: $252.70M

Results

Implied Equity Value / share$50.96

Current Price$50.96

Upside / Downside+0.0%

Implied EV$8.75B

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

Mult \ Net Debt	-$1.75B	-$747.30M	$252.70M	$1.25B	$2.25B
19.3x	$53.95	$47.96	$41.96	$35.96	$29.97
21.3x	$58.45	$52.46	$46.46	$40.46	$34.47
23.3x	$62.95	$56.96	$50.96	$44.96	$38.97
25.3x	$67.45	$61.46	$55.46	$49.46	$43.47
27.3x	$71.95	$65.96	$59.96	$53.96	$47.97

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