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

To: Director who wrote (24253)	10/10/1999 10:16:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 27307

Forget the P/E ratio for now. This company is still in its infancy. It's only about 15% sold, too. Using a P/E ratio to measure this company is like using a wind guage to measure a nuclear explosion. (That's not my line. It was used by an analyst to describe Yahoo a couple years ago.)

To: Director who wrote (24253)	10/10/1999 11:38:00 PM
From: Eric Wells	Read Replies (1) \| Respond to of 27307

Director - I'm curious on how you calculated a PE of 768 for Yahoo. Earnings for the past 4 quarters from Yahoo 10K and 10Q reports, as well as from their most recent earnings press release are as follows (these include the infamous non-recurring charges): Quarter ending Dec. 31, 1998: $18.524 million March 31, 1999: $16.435 million June 30, 1999: ($15.062) million Sept. 30, 1999: $14.682 million From the above, Yahoo's total net income for the past 12 months adds up to $34.579 million. Yahoo's current shares outstanding number 259 million. This places earnings per share for the past 12 months at $0.13. Yahoo's closing price on Friday was 192.125. This gives Yahoo a current PE ratio of 1477. Of course many will say that PE for young growing companies doesn't matter, and that investors should focus on forward PE instead (with very high profit estimates). But I believe that we must be looking at some kind of a record here - Yahoo must be the first $50+ billion company to have a such a high PE. -Eric Wells