Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: The Other Analyst who wrote (25547)	5/12/2000 11:27:00 AM
From: playavermont	Read Replies (2) of 27307

Let me add a couple items that may or may not be accurate... First, I will estimate that the revenues in 2005 will be more around 10 Billion for arguments sake. Yahoo has ( and projects to have long term ) OPERATING MARGINS in the 34%-38% range... That is a CASH COW! That would mean Yahoo would be clearing in excess of roughly $3.5 to $3.8 BILLION dollars in 2005 based on $10 Billion Revenue. Now, lets look at how this operating margin would affect free cash flow and future interest income... Let's say at that time ( in 2005 ) that they have $4 or $5 Billion in cash... (presently they have nearly $1 Billion )... This cash would provide approximately $350 Million more in interest income... That would bring TOTAL earnings to about $3.85 to $4.15 Billion. Now, Factor in any big returns on investments they MAY enjoy in other companies and BAM... very valuable holding indeed! Based on Todays Valuation of $70 to 75 Billion Market Cap. they are trading at a price to earnings ratio of 18.5 on 2005 earnings. This is all based on my MAJOR guestimate of future performance. Look back to Early 1998 when they had a market cap of about $5 Billion when they had $70 Million in yearly revenue.... Now 30 months later they have a $1 Billion Dollar Rate of Revenue and over $300 Million in earnings this year! The $5 Billion Market Cap of a little over 2 years ago was a steal! Based on YOUR NUMBERS they would have about $15 Billion in EARNINGS in 2005! I know you were pumping up your estimates for entertainment purposes but you can see how their business model is so valuable! Again, not saying buy or sell... just some observations based on past performance and company projections...

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