Posted on 01/29/2015 12:34:00 PM PST by Citizen Zed
Here's how the math works: On Tuesday night, Yahoo's stake in Yahoo Japan was worth about $7 per share, its net cash was worth about $6 per share and the Alibaba stake was worth about $41.50 per share. With the stock trading at $51, the core business was worth negative $3.50 per share. Applying updated share prices for Yahoo and Alibaba, core Yahoo has swung to a valuation of negative $6.30 per share. (Core Yahoo's value looks slightly higher if you assume a discount on the value of the Alibaba and Yahoo Japan stakes to account for how they might trade as "spinoff" companies.)
Clearly, the core business is worth much more than zero. Yahoo investors interviewed by CNBC along with some Wall Street analysts say the core business is realistically worth around five times earnings before interest, taxes, depreciation and amortization. That suggests a valuation of about $6 per share.
Why the disconnect? Investors say they are concerned about shrinking profits in the company's core business. Yahoo projected a decline in EBITDA for the first quarter and investors don't appear hopeful for a turnaround anytime soon.
(Excerpt) Read more at mob.cnbc.com ...
well, their email is worth sh$t
If you read their news, yes, they are worth far less than ZERO
Let me add 15,000,000 dittos to that statement.
No love lost if that Obama boot licker Marrisa Mayer gets canned as CEO.
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