RE: To Ditch's - a Little Context..
Source: Marketwatch.com (of course, where else can you find this awesome coverage. Disclosure: I own stock in DBCC, CBS's Marketwatch's Partner)....
cbs.marketwatch.com
Nothing can slow down Yahoo!
Is it too rich? That depends on your perspective
By, Darren Chervitz
"...To get a better perspective on what Yahoo!'s valuation really means, we played around with the CBS.MarketWatch.com stock scanner, powered by Hoover's.
But first, a couple of comments. Yahoo!'s valuation is $21.2 billion on a diluted basis, which means that you have to include outstanding in-the-money options or warrants. Most analysts use the diluted number when calculating the market cap of a stock, but Hoover's apparently looks at the basic number of shares outstanding. So, according to Hoover's, Yahoo! has a market cap of about $17.4 billion, and we used that number when making our valuation comparisons.
Putting it in context
Now for the big picture. Only 168 companies on the U.S. stock exchanges have a market cap above Yahoo!'s. In the past 12 months, the company has generated about $150.1 million in sales and $16.3 million in net losses, according to Market Guide. Insurance provider American General Corp. (AGC), the company that sits just above Yahoo! in terms of market cap, recorded sales of $9.9 billion and a profit of $1 billion in the past year.
How Yahoo! is valued compared with competitors depends on whom you call Yahoo!'s competition. If you agree with Hoover's definition (that Yahoo! is an Internet company), then only America Online (AOL) stands higher, with a basic market cap of more than $36 billion.
But many have termed Yahoo! as a new-media player, and that certainly seems to be the case if we're judging newness by valuation. Only six traditional media companies have a bigger market cap than Yahoo! (Hoover's for some reason doesn't include CBS (CBS) as a media company, but, as part of the CBS family, we feel compelled to report that the stock still has a higher valuation than Yahoo! -- barely)..."
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