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

To: Thomas Stewart who wrote (15856)	12/4/1998 8:52:00 PM
From: HG	Respond to of 27307

Thomas, Completely agree with you. We had this discussion few posts back.

To: Thomas Stewart who wrote (15856)	12/4/1998 9:41:00 PM
From: momo	Respond to of 27307

That was a very nice proverb. All I am trying is to get other peoples opinion. here is my analysis: If the average S&P PE is currently around 25 I would accept a 100 PE ratio for Yahoo because of the future of Internet (Assuming no competition because of over crowding of portals) . Now projecting forward the earning based on an exponential regression you can assume a $300M in sales for 1999. With a profit margin of 40% (Way High) it means an earning of around $120M and or $1.20/Share (Forecasts call for .68 to .92 /share). Using PE of 100 we will be at around $120/Share. Now you know that if a business is that lucrative and cheap to establish (Total yhoo assets under $500M) every body is going to dive in and competition will put pressure on pricing and earnings. thats why I belive you will see a price below $100/share and maybe at that point MSFT may be willing to spend $10B to buy the company (Remember XCIT has only $2.0B Market valuation and about the same earning and you can buy a lot of air time to hype up your site for $8.0B or you can build 16 other portals). This rosy picture assumes bullish market and good economy in general. Knowing all the layoffs announced this week alone we know that this is not going to be the case in 1999. My best estimate for Yahoo is around $60/share or around $6B market capitalization by the end of 1999. Any Ideas?