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

To: Jeff Dryer who wrote (15026)	11/9/1998 11:56:00 PM
From: Jeff Dryer	Read Replies (2) \| Respond to of 27307

For fun, here are my example projections for Yahoo. I don't stand by these projections in any way. But, if Yahoo were to produce these kind of numbers over the next 5 years (along with other assumptions outlined below), then Yahoo (even at today's current stock price), is undervalued. Year 1998 1999 2000 2001 2002 2003 ----------------- ---- ---- ---- ---- ---- ---- Revenue (millions) 190 380 684 1230 1980 3000 Net Income (millions) 49 114 205 370 590 900 Note: One-time charges not included in estimated results. So in Year 2003, with 30% profit margins, Yahoo generates revenue of $3 billion and Net Income of $900 million. Due to acquisitions and employee option plan, I'm estimating total diluted shares in 2003 will increase to 200 million from 114.5 million total diluted shares as reported in the recent Oct. earnings release. Give Yahoo a 75 P/E on Year 2003 results, and you get a price of $337.50 and a market cap of $67.5 billion in Year 2003. Calculations: 900 million Net Income x 75 P/E divided by 200 million shares = $337.50 200 million shares x $337.50 = $67.5 billion