Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James A. Shankland who wrote (25216)	1/11/2000 10:36:00 PM
From: Greater Fool	Respond to of 27307

I like your style, Mr. Shankland. Another fun valuation exercise is to test what the valuation implies for cash flows in perpetuity. ~$100 billion value calls for ~$10 billion cash flow, per year, steady state, forever and ever and ever. And that's assming that Yahoo! becomes a nice steady low-risk company resembling an electric utility. I'm guessing that the cash flow from operations is about equal to the net income, or ~$50M, or ~$200M per year. Looks to me like it needs to be about fifty times as high ... forever and ever and ever. Well, I was wrong about it all when Yahoo had a market cap one twentieth what it is now. I'm sure I'll still be wrong when the cap grows to twenty times its current level.