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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: SLSUSMA who wrote (23352)	7/30/1999 2:32:00 AM
From: Jeff Dryer	Read Replies (3) \| Respond to of 27307

Welcome to SI! I am your welcoming committee. <g> Here is a model I posted to the AOL thread a few minutes ago. I've plugged in some numbers and ran it for Yahoo. If you or anyone else wants to give me some assumptions for revenue growth rate, Net Profit Margin, P/E, and diluted share growth, I'll run the numbers and post it. Also, let me know what kind of return you want on your money, so I can calculate a buy price. Here is a 3 year model for Yahoo with what I believe are VERY aggressive assumptions. Each column represents a full year (eg."1999" represents a full year of financial results ending June 1999). Growth rate assumption for Revenue: 100% per year Net Profit Margins: 30% P/E used for model: 150 Diluted Share Growth: 15% per year $ and share amounts in millions 1999 2000 2001 2002 ------ ------ ------ ------ Revenue $331 $662 $1,324 $2,648 Net Income $95 $199 $397 $794 Net Profit Margin 29% 30% 30% 30% Fully diluted shares 264 304 349 402 Market Cap (Net Income X 150 P/E) $29,850 $59,550 $119,100 Stock Price $98.19 $170.63 $296.27 Discount the $296.27 stock price in year 2002 back at a 25% return You'd be willing to pay $151.69 for Yahoo now if you believe the results in the model presented above will occur, and are willing to hold Yahoo for 3 years, and you are satisfied with a 25% return on your money per year.