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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Tim McCormick who wrote (22221)	5/15/2000 11:40:00 AM
From: gpowell	Read Replies (2) \| Respond to of 29970

You mean 8.5 billion in revenue (your estimate was actually 9.5), not earnings. Here's is you post. Message 7059834 You based your valuation on erroneous subscription fees (you assumed ATHM kept 100% of the fee), you also left out ad/e-commerse fees, but that is understandable since it was 18 months ago. You also made incorrect estimations on the rates of homes passed and, of course, you have zero international revenue included. Your net margins are a little low for 2010, and your opportunity cost is much too low. For 18 months ago, this was a good first effort. Had you adjusted for correct information I would say a great effort, especially for an 18 year old. I would suggest that you should have continued to refine it as new information became available or errors were pointed out. What can we conclude? That price change is so dynamic that nearly any valuation method will yield a correct result at some point in time. By the way, my projected revenue for 2010 is 16 billion.