| Company name | Yahoo! Inc. |
| Stock ticker | YHOO |
| Live stock price | [stckqut]YHOO[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Poor |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $48.76 |
| Target stock price (averages with growth) | $19.48 |
| Target stock price (averages with no growth) | $9.03 |
| Target stock price (manual assumptions) | $31.69 |
The following company description is from Google Finance: http://www.google.com/finance?q=yhoo
Yahoo! Inc. is a technology company. The Company is engaged in providing Internet search, communication and digital content. The Company manages its business geographically: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific. The Company’s products include Search, Communications, Digital content, Flickr, and Tumblr. Yahoo Search is a search engine serves as a starting point to navigate the Internet and discover information, which is ranked and organized -based on their relevance to the query. Yahoo Mail connects users across mobile phones, tablets and PC. Yahoo.com offers news and information, including Yahoo original content and partner content. Flickr is a Web and mobile photo management and sharing service. Tumblr offers a Web platform and mobile applications (particularly on the iOS and Android platforms) that allow users to create, share and curate content. Yahoo is also a digital publisher and advertising technology provider.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Yahoo! Inc. as long as the price is correct. Most of the fundamentals of Yahoo! Inc. are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock. I am removing the stock from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Yahoo! Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $31.58
- Growth: 0.1
- Current EPS (TTM): $6.89
- P/E: 4.6
- Future EPS Calc: $11.09
- Future Stock Price Calc: $51.04
- Target stock price: $31.69
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I hope that this makes you a Confident Investor.