tag:blogger.com,1999:blog-8152901575140311047.post5352101366653026546..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: Yahoo! A puzzle, a mystery and an enigmaAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger35125tag:blogger.com,1999:blog-8152901575140311047.post-60755096621436563892015-01-06T16:00:32.521-05:002015-01-06T16:00:32.521-05:00When you calculate the Cost of Capital of Yahoo...When you calculate the Cost of Capital of Yahoo's core business, you used Yahoo’s market cap to determine it’s leverage. I wonder if this might considerably understate the use of leverage by Yahoo’s core business considering its market cap includes its large stakes in Alibaba and Yahoo Japan. Do you believe it might be possible or beneficial to subtract out the Alibaba and Yahoo Japan stakes from Yahoo’s market cap in this calculation? Especially now that they both trade publicly.ayuanahttp://clinicfarmasi.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-11696009668324839562014-09-28T02:39:28.701-04:002014-09-28T02:39:28.701-04:00Dear Professor,
When you calculate the Cost of C...Dear Professor, <br /><br />When you calculate the Cost of Capital of Yahoo's core business, you used Yahoo’s market cap to determine it’s leverage. I wonder if this might considerably understate the use of leverage by Yahoo’s core business considering its market cap includes its large stakes in Alibaba and Yahoo Japan. Do you believe it might be possible or beneficial to subtract out the Alibaba and Yahoo Japan stakes from Yahoo’s market cap in this calculation? Especially now that they both trade publicly.<br /><br />Thank you,<br />Richard LewisRichard Lewisnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-4665172033077522482014-09-15T07:54:13.487-04:002014-09-15T07:54:13.487-04:00Professor, thank you very much for sharing the pro...Professor, thank you very much for sharing the process and the worksheet! Roby La Murahttps://www.blogger.com/profile/07184527906182241877noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-30747358531078920832014-07-25T09:37:08.040-04:002014-07-25T09:37:08.040-04:00With regards to the tax, there is a potential for ...With regards to the tax, there is a potential for a cash rich split similar to the type recently manoeuvred by The Sage. Alibaba could also buy all of YHOO after the IPO (using the new cash) to unlock value, also avoiding taxes by cancelling the stock, and swapping Yahoo Japan for Softbank's BABA share. The old YHOO would then conceivably be sold to either PE or more likely imho to MSFT, especially considering Nardella's recent reluctance to outline his plan for the online business, which continues to gain market traction but bleed cash. This transaction will surely prove to be very interesting in many ways as a special situation investmentBarrettnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27540712006000584552014-07-01T04:50:59.944-04:002014-07-01T04:50:59.944-04:00Interesting analysis.
One issue I might flag thou...Interesting analysis.<br /><br />One issue I might flag though is that Yahoo is liable for taxes on inter-company dividends is it not?<br /><br />This means there is a disadvantage to the holding company structure vs. buying the stocks directly for Yahoo shareholders.<br /><br />This is one reason why holding companies often trade at discounts to their NAVs. I've often in my valuation work taken the marginal tax rate on dividends x average expected payout ratio as being a justified discount to NAV due to the presence of a holding company structure.<br /><br />So applied, that might account for some of the observed undervaluation you mention?<br /><br />Cheers,<br />Lyall TaylorLyall Taylorhttps://www.blogger.com/profile/18230748365980023462noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-67056320942844176582014-06-21T07:57:19.394-04:002014-06-21T07:57:19.394-04:00Obat Kuat JOssObat Kuat JOssObat Kuathttp://obatkuatjuara.com/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-52728261097037721192014-06-13T09:31:57.181-04:002014-06-13T09:31:57.181-04:00Thank you, "Musings on Markets"
very int...Thank you, "Musings on Markets"<br />very interesting and could make me be touched<br />hopefully more advanced in the future<br /><br /><a href="http://www.obat-chengchos.com/" rel="nofollow"><b>Vimax Asli</b></a>Ciri Vimax Aslihttp://www.obatkuatpembesar.biz/ciri-vimax-asli/noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-15178170949937956022014-06-11T01:33:15.917-04:002014-06-11T01:33:15.917-04:00Dear Professor,
I read through your analysis. But...Dear Professor, <br />I read through your analysis. But if your numbers are correct I would say that is a less risky strategy to buy a yahoo Japan share. There you have a single entity with growth where the misprice is significant:<br /><br /> Applying this multiple to the revenues of $3,929 million in 2013, we estimate a value of $31.1 billion for Yahoo! Japan’s operating assets. Adding cash and subtracting debt yields a value of equity of $34.2 billion for Yahoo! Japan.<br />Pricing: Yahoo! Japan is a stand alone and publicly traded entity, with a market capitalization of $23.2 billion in May 2014.Anonymoushttps://www.blogger.com/profile/11680241939795637279noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-36954101270813068572014-06-08T13:32:20.017-04:002014-06-08T13:32:20.017-04:00Yahoo can never seem to get on track Yahoo finance...Yahoo can never seem to get on track Yahoo finance is worse now than before. Theirs not a lot of great material on yahoo in general.PENNY STOCK INVESTMENTShttp://www.manhattancalumet.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-38437751081085529452014-06-08T04:55:17.929-04:002014-06-08T04:55:17.929-04:00Thank you for sharing
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Request you to please do a webcast on R...Professor<br /><br />Request you to please do a webcast on Risk management. the reason I am asking you because I have referred certain books on Risk management & I certainly feel that this space is dominated by the quants guys.I have nothing against them but the way risk management is approached their is so little of Finance <br /><br />your view will be a great help<br /><br />thak you<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-36096937814351925592014-06-01T07:39:36.356-04:002014-06-01T07:39:36.356-04:00very nice article, i like it, thank you for sharin...very nice article, i like it, thank you for sharing.. <a href="http://www.24propertyhall.com/" rel="nofollow">Odisha Real Estate</a>, <a href="http://www.24propertyhall.com/" rel="nofollow">Odisha Property</a> <br /><br /><br />OdishaHaalhttps://www.blogger.com/profile/09140598039422884373noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-46804946177046054312014-05-27T16:43:01.104-04:002014-05-27T16:43:01.104-04:00The links to the Excel files are not working... (g...The links to the Excel files are not working... (get the Error page from NYUStern) Could you please fix it, Mr Damodaran? Many thanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-15204039040222790052014-05-26T23:54:41.694-04:002014-05-26T23:54:41.694-04:00Nice read! Very informative. Unseasonably warm wea...Nice read! Very informative. Unseasonably warm weather sends chill through retailers. Read it here: http://bit.ly/1kiUCTY. storewars newshttp://storewars.netnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-49506572880147137812014-05-26T17:53:57.679-04:002014-05-26T17:53:57.679-04:00Why have you added IPO proceeds to the equity valu...Why have you added IPO proceeds to the equity value of Ali Baba? Shouldn't you then increase the number of share outstanding to include potential IPO shares as well? Isn't it a mistake to adjust cash by IPO proceeds but not that outstanding shares? I would like your opinion on how IPO and in general fund raising (venture cap etc) affect enterprise value.Subbunoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-56593869612629602292014-05-26T02:10:08.955-04:002014-05-26T02:10:08.955-04:00Yahoo sells 208 Million Shares after AliBaba's...Yahoo sells 208 Million Shares after AliBaba's IPO. This gives them a serious amount of Cash. I think Ms. Mayer should use this to fund acquisitions and integrate these acquisitions with Yahoo!. Yahoo! has tremendous brand vale (even now). Though investors are looking at getting something back, this would only be for a short term. Yahoo! will have to identify potential acquisitions NOW. And your suggestion of running it as a mature business does not go well. Today, even a 100 year old company is in a start-up mode.Maheshhttps://www.blogger.com/profile/07622404784580104025noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-68774722730265695052014-05-25T23:39:25.687-04:002014-05-25T23:39:25.687-04:00Hi Prof, did you run a simulation to determine the...Hi Prof, did you run a simulation to determine the probability of Yahoo being undervalued as you did with Apple? Thx.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-1416963267095481872014-05-25T21:47:07.021-04:002014-05-25T21:47:07.021-04:00Thank you for your articles and lectures.Thank you for your articles and lectures.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27696415551355941782014-05-23T07:22:17.683-04:002014-05-23T07:22:17.683-04:00Hi Professor,
Was just looking at the Yahoo Japan ...Hi Professor,<br />Was just looking at the Yahoo Japan FY 2013 report. This shows a 12% increase in yearly revenue growth whereas in your valuation spreadsheet, you have negative 5%. Can you pl clarify? Also, did you use the current exchange rate to convert in to USD?<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40238237211243892132014-05-22T06:39:03.222-04:002014-05-22T06:39:03.222-04:00Hopefully Ms Mayer will listen to your advice and ...Hopefully Ms Mayer will listen to your advice and work to bridge the gap between price and value using your suggestions.(i.e. by bringing the price up and not vice versa!!). Perhaps some activist investors may step in to do this once the Alibaba IPO gets priced up.Ianhttps://www.blogger.com/profile/11137974214784336083noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-23643372859420381822014-05-21T12:17:25.062-04:002014-05-21T12:17:25.062-04:00Do agree to your valuation and mine is between $45...Do agree to your valuation and mine is between $45 and $47.<br /><br />Noisy newsflows around Alibaba IPO (use of cash etc) and the slowed user growth at Tumblr after acquired are I think the major points that most of beauty voting traders/investors are concerned about. <br /> I Blackstonenoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-32551897410504664342014-05-21T08:46:19.113-04:002014-05-21T08:46:19.113-04:00I like your information ,Thanks
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