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

To: Bob Kimball who wrote (7651)	3/2/1998 3:13:00 PM
From: RagnBull	Read Replies (2) \| Respond to of 27307

I'm considering making an investment in Yahoo! and am trying to understand Yahoo!'s valuation when compared to other companies. While recognizing that Yahoo! might be considered to be in a unique position, it does seem to me that one should be able to compare Yahoo! with Time-Warner and Disney. Both companies are in the entertainment and media business and derive a considerable amount of their revenues from adverstising and subscriptions. I took each companies' latest quarterly report and found the following: Time-Warner ================= Yahoo! Quarter X Yahoo! ========== ========== ======== Market Valuation as at 02/28/98 $3,276.40 $37,732.50 11.52 Sales Revenue $25.11 $9,458.00 376.74 Operating Profit $(2.60) $1,737.00 N/A Net Asset Value $102.10 $9,498.00 93.03 Time-Warner closed at an all-time high. Time-Warner, with sales revenues 376.74 times Yahoo!, operating profits compared to operating losses,and NAV 93 times Yahoo!, has a market valuation of only 11 times Yahoo!. Disney ================= Yahoo! Quarter X Yahoo! ========== ========== ======== Market Valuation as at 02/28/98 $3,276.40 $75,557.80 23.06 Sales Revenue $25.11 $22,473.00 895.16 Operating Profit $(2.60) $3,945.00 N/A Net Asset Value $102.10 $9,498.00 169.29 Disney closed near to its all-time high Disney, with sales 895 times Yahoo!, huge operating profits compared to operating losses, and NAV 169 times Yahoo!, has a market valuation of only 23 times Yahoo!. It seems to me that, if the market's valuation of Yahoo! is reasonable, then Time-Warner and Disney are grossly undervalued. However, if the market's valuation of Time-Warner and Disney is reasonable, then Yahoo! must be grossly overvalued. Am I missing something?