Yahoo! Inc Valuation – June 2016 $YHOO

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – March 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Yahoo! Inc (YHOO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Yahoo! Inc. (Yahoo), along with its subsidiaries, is engaged in digital information discovery. The Company’s segments include the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific. The Company focuses on informing, connecting and entertaining its users with its search (Yahoo search), communications, including Yahoo Mail and Yahoo Messenger, and digital content products, including Tumblr, and its four verticals, such as Yahoo News, Yahoo Sports, Yahoo Finance and Yahoo Lifestyle. Yahoo Search is a search engine that serves as a guide for users to discover the information on the Internet. Yahoo Mail connects users to the people and things across mobile and desktop. Yahoo Messenger is an instant messaging service that provides an interactive and personalized way for users to connect and communicate in real-time. The Company’s Digital Content offerings include Tumblr, its social platform, and its four verticals, including News, Sports, Finance and Lifestyle.

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ModernGraham Valuation of YHOO – June 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $35,863,584,368 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 6.24 Pass
3. Earnings Stability Positive EPS for 10 years prior Fail
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 170.34% Pass
6. Moderate PEmg Ratio PEmg < 20 48.83 Fail
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.24 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 6.24 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.21 Pass
3. Earnings Stability Positive EPS for 5 years prior Fail
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Fail

Stage 2: Determination of Intrinsic Value

YHOO value chart June 2016

EPSmg $0.77
MG Growth Estimate -4.25%
MG Value $0.00
Opinion Overvalued
MG Grade F
MG Value based on 3% Growth $11.11
MG Value based on 0% Growth $6.51
Market Implied Growth Rate 20.16%
Current Price $37.40
% of Intrinsic Value N/A

Yahoo! Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings stability over the last ten years, and the poor dividend history, and the high PEmg ratio. The Enterprising Investor has concerns regarding the lack of earnings stability or growth over the last five years, and the lack of dividends. As a result, all value investors following the ModernGraham approach should explore other opportunities at this time or proceed cautiously with a speculative attitude.

As for a valuation, the company appears to be Overvalued after seeing its EPSmg (normalized earnings) decline from $1.57 in 2012 to an estimated $0.77 for 2016. This level of demonstrated earnings growth does not support the market’s implied estimate of 20.16% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

Yahoo! Inc. scores quite poorly in the ModernGraham grading system, with an overall grade of F.

Stage 3: Information for Further Research

YHOO charts June 2016

Net Current Asset Value (NCAV) -$8.94
Graham Number $16.02
PEmg 48.83
Current Ratio 6.24
PB Ratio 1.24
Current Dividend $0.00
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2016
Total Current Assets $7,224,224,000
Total Current Liabilities $1,158,010,000
Long-Term Debt $1,249,775,000
Total Assets $44,158,229,000
Intangible Assets $1,132,230,000
Total Liabilities $15,679,882,000
Shares Outstanding (Diluted Average) 945,719,000

Earnings Per Share History

Next Fiscal Year Estimate $0.38
Dec2015 -$4.64
Dec2014 $7.45
Dec2013 $1.26
Dec2012 $3.28
Dec2011 $0.82
Dec2010 $0.90
Dec2009 $0.42
Dec2008 $0.29
Dec2007 $0.47
Dec2006 $0.52
Dec2005 $1.28
Dec2004 $0.58
Dec2003 $0.19
Dec2002 $0.04
Dec2001 -$0.08
Dec2000 $0.06
Dec1999 $0.05
Dec1998 $0.03
Dec1997 -$0.03

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $0.77
Dec2015 $1.18
Dec2014 $3.64
Dec2013 $1.61
Dec2012 $1.57
Dec2011 $0.67
Dec2010 $0.57
Dec2009 $0.47
Dec2008 $0.54
Dec2007 $0.64
Dec2006 $0.66
Dec2005 $0.62
Dec2004 $0.24
Dec2003 $0.07
Dec2002 $0.01
Dec2001 $0.00
Dec2000 $0.03

Recommended Reading:

Other ModernGraham posts about the company

10 Most Undervalued Companies for the Defensive Investor – May 2016
10 Most Undervalued Companies for the Defensive Investor – February 2016
10 Low PE Stocks for the Defensive Investor – February 2016
10 Low PE Stocks for the Defensive Investor – January 2016
11 Best Stocks For Value Investors This Week – 11/21/15

Other ModernGraham posts about related companies

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Citrix Systems Inc Valuation – May 2016 $CTXS
Symantec Corp Valuation – February 2016 $SYMC
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Cisco Systems Inc Valuation – February 2016 $CSCO
CA Inc Valuation – January 2016 Update $CA
Intuit Inc Valuation – January 2016 Update $INTU
Microsoft Corp Valuation – February 2016 $MSFT
Cisco Systems Inc Valuation – February 2016 $CSCO

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Yahoo! Inc. Valuation – November 2015 Update $YHOO

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Most Undervalued Companies for the Defensive Investor – November 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Yahoo! Inc. (YHOO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Yahoo! Inc. is a technology company. The Company is engaged in providing Internet search, communication and digital content. The Company manages its business geographically: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific. The Company’s products include Search, Communications, Digital content, Flickr, and Tumblr. Yahoo Search is a search engine serves as a starting point to navigate the Internet and discover information, which is ranked and organized -based on their relevance to the query. Yahoo Mail connects users across mobile phones, tablets and PC. Yahoo.com offers news and information, including Yahoo original content and partner content. Flickr is a Web and mobile photo management and sharing service. Tumblr offers a Web platform and mobile applications (particularly on the iOS and Android platforms) that allow users to create, share and curate content. Yahoo is also a digital publisher and advertising technology provider.

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To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

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ModernGraham Valuation of YHOO – November 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $31,163,719,818 Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 5.63 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 591.41% Pass
6. Moderate PEmg Ratio PEmg < 20 11.88 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.11 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 5.63 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 0.19 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

YHOO value Chart November 2015

EPSmg $2.78
MG Growth Estimate 15.00%
MG Value $106.93
Opinion Undervalued
MG Value based on 3% Growth $40.27
MG Value based on 0% Growth $23.61
Market Implied Growth Rate 1.69%
Current Price $33.00
% of Intrinsic Value 30.86%

Yahoo! Inc. qualifies for both the Enterprising Investor and the more conservative Defensive Investor.  Both investor types are only initially concerned with the lack of dividends.  As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research.

As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.67 in 2011 to an estimated $2.78 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.69% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Yahoo! Inc. (YHOO)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

YHOO Charts November 2015

Net Current Asset Value (NCAV) -$5.59
Graham Number $9.72
PEmg 11.88
Current Ratio 5.63
PB Ratio 1.11
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

 

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Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information Sep15
Total Current Assets $7,596,073,000
Total Current Liabilities $1,348,833,000
Long-Term Debt $1,217,408,000
Total Assets $41,135,000,000
Intangible Assets $5,663,775,000
Total Liabilities $12,889,050,000
Shares Outstanding (Diluted Average) 946,934,000

Earnings Per Share History

Next Fiscal Year Estimate $0.14
Dec14 $7.45
Dec13 $1.26
Dec12 $3.28
Dec11 $0.82
Dec10 $0.90
Dec09 $0.42
Dec08 $0.29
Dec07 $0.47
Dec06 $0.52
Dec05 $1.28
Dec04 $0.58
Dec03 $0.18
Dec02 $0.04
Dec01 -$0.08
Dec00 $0.06
Dec99 $0.04
Dec98 -$0.02
Dec97 -$0.06
Dec96 -$0.01
Dec95 -$0.01

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.78
Dec14 $3.64
Dec13 $1.61
Dec12 $1.57
Dec11 $0.67
Dec10 $0.57
Dec09 $0.47
Dec08 $0.54
Dec07 $0.64
Dec06 $0.66
Dec05 $0.62
Dec04 $0.24
Dec03 $0.07
Dec02 $0.01
Dec01 -$0.01
Dec00 $0.02
Dec99 $0.00

Recommended Reading:

Other ModernGraham posts about the company

10 Most Undervalued Companies for the Defensive Investor – November 2015
10 Low PE Stocks for the Defensive Investor – November 2015
10 Most Undervalued Companies for the Defensive Investor – October 2015
10 Low PE Stocks for the Defensive Investor – October 2015
10 Most Undervalued Companies for the Defensive Investor – September 2015

Other ModernGraham posts about related companies

Microsoft Corporation Valuation – November 2015 Update $MSFT
Cisco Systems Inc. Valuation – November 2015 Update $CSCO
Alphabet Inc. Valuation – October 2015 Update $GOOG $GOOGL
Intuit Inc. Analysis – October 2015 Update $INTU
Oracle Corporation Analysis – October 2015 Update $ORCL
CA Inc. Analysis – August 2015 Update $CA
The Best Companies of the Software Industry – August 2015
Ansys Inc. Analysis – Initial Coverage $ANSS
Yahoo! Inc. Analysis – August 2015 Update $YHOO
Autodesk Inc. Analysis – August 2015 Update $ADSK

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Yahoo! Inc. Analysis – August 2015 Update $YHOO

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Most Undervalued Companies for the Defensive Investor – August 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Yahoo! Inc. (YHOO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Yahoo! Inc. is a technology company. The Company is engaged in providing Internet search, communication and digital content. The Company manages its business geographically: the Americas; Europe, the Middle East and Africa (EMEA), and Asia Pacific. The Company’s products include Search, Communications, Digital content, Flickr, and Tumblr. Yahoo Search is a search engine serves as a starting point to navigate the Internet and discover information, which is ranked and organized -based on their relevance to the query. Yahoo Mail connects users across mobile phones, tablets and PC. Yahoo.com offers news and information, including Yahoo original content and partner content. Flickr is a Web and mobile photo management and sharing service. Tumblr offers a Web platform and mobile applications (particularly on the iOS and Android platforms) that allow users to create, share and curate content. Yahoo is also a digital publisher and advertising technology provider.

[level-free]

To read the rest of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
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Downloadable PDF version of this valuation:

ModernGraham Valuation of YHOO

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass 6 out of the following 7 tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil Pass
2. Sufficiently Strong Financial Condition Current Ratio > 2 Pass
3. Earnings Stability Positive EPS for 10 years prior Pass
4. Dividend Record Dividend Payments for 10 years prior Fail
5. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end Pass
6. Moderate PEmg Ratio PEmg < 20 Pass
7. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 Pass
Score
Enterprising Investor; must pass 4 out of the following 5 tests, or be suitable for the Defensive Investor.
1. Sufficiently Strong Financial Condition Current Ratio > 1.5 Pass
2. Sufficiently Strong Financial Condition Debt to NCA < 1.1 Pass
3. Earnings Stability Positive EPS for 5 years prior Pass
4. Dividend Record Currently Pays Dividend Fail
5. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

EPSmg 2.92
MG Growth Estimate 15.00%
MG Value $112.32
Opinion Undervalued
MG Value based on 3% Growth $42.30
MG Value based on 0% Growth $24.80
Market Implied Growth Rate 1.96%
Current Price $36.24
% of Intrinsic Value 32.27%

Yahoo! Inc. qualifies for the more conservative Defensive Investor or the Enterprising Investor.  Both investor types are only concerned by the lack of dividend payments. As a result, all value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.67 in 2011 to an estimated $2.92 for 2015.  This level of demonstrated earnings growth outpaces the market’s implied estimate of 1.96% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Yahoo! Inc. (YHOO)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

YHOO Charts - August 2015

Net Current Asset Value (NCAV) -$9.68
PEmg 12.42
Current Ratio 5.39
PB Ratio 1.01
Dividend Yield 0.00%
Number of Consecutive Years of Dividend Growth 0

 

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Total Current Assets $7,580,932,000
Total Current Liabilities $1,406,684,000
Long-Term Debt $1,201,540,000
Total Assets $50,191,820,000
Intangible Assets $5,558,814,000
Total Liabilities $16,659,210,000
Outstanding Shares 937,569,000

Earnings Per Share History

Next Fiscal Year Estimate $0.56
Dec14 $7.45
Dec13 $1.26
Dec12 $3.28
Dec11 $0.82
Dec10 $0.90
Dec09 $0.42
Dec08 $0.29
Dec07 $0.47
Dec06 $0.52
Dec05 $1.28
Dec04 $0.58
Dec03 $0.18
Dec02 $0.04
Dec01 -$0.08
Dec00 $0.06
Dec99 $0.04
Dec98 -$0.02
Dec97 -$0.06
Dec96 -$0.01
Dec95 -$0.01

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $2.92
Dec14 $3.64
Dec13 $1.61
Dec12 $1.57
Dec11 $0.67
Dec10 $0.57
Dec09 $0.47
Dec08 $0.54
Dec07 $0.64
Dec06 $0.66
Dec05 $0.62
Dec04 $0.24
Dec03 $0.07
Dec02 $0.01
Dec01 -$0.01
Dec00 $0.02

Recommended Reading:

Other ModernGraham posts about the company

10 Most Undervalued Companies for the Defensive Investor – August 2015
5 Most Undervalued Companies for the Defensive Investor – July 2015
5 Most Undervalued Companies for the Defensive Investor – June 2015
30 Companies in the Spotlight This Week – 5/23/15
Yahoo Inc. Quarterly Valuation – May 2015 $YHOO

Other ModernGraham posts about related companies

Autodesk Inc. Analysis – August 2015 Update $ADSK
Microsoft Corporation Analysis – August 2015 Update $MSFT
Cisco Systems Inc. Analysis – August 2015 Update $CSCO
Google Inc. Analysis – July 2015 Update $GOOGL
Intuit Inc. Analysis – July 2015 Update $INTU
Oracle Corporation Analysis – July 2015 Update $ORCL
Adobe Systems Inc. Analysis – 2015 Update $ADBE
CA Inc. Stock Analysis – May 2015 Quarterly Update $CA
Yahoo Inc. Quarterly Valuation – May 2015 $YHOO
Autodesk Inc. Quarterly Valuation – May 2015 $ADSK

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  This is not investment advice and all readers should speak with a registered investment adviser prior to making any investment decision.  ModernGraham is not affiliated with the company in any manner.

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Yahoo Inc. Quarterly Valuation – May 2015 $YHOO

200px-Yahoo!_logo.svgRecently, multiple analysts have rated Yahoo (YHOO) as an intriguing company, primarily due to its stake in Alibaba (BABA). Andrew Labutka of Speculation Sunday found the company’s core business to be currently valued by the market at less than zero, while fellow Seeking Alpha contributor Brian Wu dove into the possibility that Yahoo’s recent deal with Microsoft (MSFT) will lead to increased margins. These are strong qualitative conclusions, and should be coupled with strong quantitative analysis in order to compare the opportunity to other possibilities.

Benjamin Graham, the father of value investing, taught that the most important aspect to consider is whether the company is trading at a discount relative to its intrinsic value. It is through a thorough fundamental analysis that the investor is able to make a determination about a potential investment’s merits. Here is an updated look at how Yahoo fares in the ModernGraham valuation model.

The model is inspired by the teachings of Benjamin Graham, and considers numerous metrics intended to help the investor reduce risk levels. The first part of the analysis is to determine whether the company is suitable for the very conservative Defensive Investor or the less conservative Enterprising Investor, who is willing to spend a greater amount of time conducting further research.

In addition, Graham strongly suggested that investors avoid speculation, in order to remove the subjective elements of emotion. This is best achieved by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another. By using the ModernGraham method, one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.

YHOO Chart

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Defensive Investor – Must pass at least 6 of the following 7 tests: Score = 6/7

  1. Adequate Size of Enterprise – Market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – Current ratio greater than 2 – PASS
  3. Earnings Stability – Positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – Has paid a dividend for at least 10 straight years – FAIL
  5. Earnings Growth – Earnings per share has increased by at least 1/3rd over the last 10 years, using 3-year averages at the beginning and end of the period – PASS
  6. Moderate PEmg (price over normalized earnings) ratio – PEmg is less than 20 – PASS
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – Must pass at least 4 of the following 5 tests or be suitable for a Defensive Investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – Current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt-to-Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – Positive earnings per share for at least 5 years – PASS
  4. Dividend Record – Currently pays a dividend – FAIL
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data

MG Value $111.68
MG Opinion Undervalued
Value Based on 3% Growth $42.06
Value Based on 0% Growth $24.66
Market Implied Growth Rate 3.47%
NCAV -$10.35
PEmg 15.44
Current Ratio 5.02
PB Ratio 1.26

Balance Sheet – March 2015

Current Assets $7,023,000,000
Current Liabilities $1,398,000,000
Total Debt $1,186,000,000
Total Assets $50,492,000,000
Intangible Assets $5,582,000,000
Total Liabilities $16,833,000,000
Outstanding Shares 948,000,000

Earnings Per Share

2015 (estimate) $0.51
2014 $7.45
2013 $1.26
2012 $3.28
2011 $0.82
2010 $0.90
2009 $0.42
2008 $0.29
2007 $0.47
2006 $0.52
2005 $1.28

Earnings Per Share – ModernGraham

2015 (estimate) $2.90
2014 $3.64
2013 $1.61
2012 $1.57
2011 $0.67
2010 $0.57

Dividend History

Yahoo! does not pay a dividend.

Conclusion

Yahoo! passes the initial requirements of the Enterprising Investor, but not the more conservative Defensive Investor. The Defensive Investor is concerned by the company’s lack of dividend payments, a concern shared by the Enterprising Investor. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, it has grown its EPSmg (normalized earnings) from $0.67 in 2011 to an estimated $2.90 for 2015. This is a very strong level of demonstrated growth, which is well above the market’s implied estimate for annual earnings growth of 3.47% over the next 7-10 years.

In recent years, the company’s actual growth in EPSmg has been astronomical, averaging nearly 67% annually, and while the ModernGraham valuation model reduces the actual growth to a more conservative figure when making an estimate, the model still returns an estimate of intrinsic value well above the current price, indicating that the company is undervalued at the present time.

Disclaimer: The author did not hold a position in any of the companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours. Logos taken from either the company website or Wikipedia; this article is not affiliated with the companies in any manner.

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Yahoo! Inc. Quarterly Valuation – February 2015 $YHOO

200px-Yahoo!_logo.svg

Yahoo Inc. passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The only issue for both investor types is the lack of dividends. As a result, all value investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

When it comes to that valuation, it is critical to consider the company’s earnings history. In this case, Yahoo Inc. has grown its EPSmg (normalized earnings) from $0.57 in 2010 to $3.64 for 2014. This is a very strong level of demonstrated growth, which is well above the market’s implied estimate for earnings growth of only 1.73% over the next 7-10 years. The ModernGraham valuation model reduces the historical growth to a more conservative figure, assuming that some slowdown will occur, but still returns an estimate of intrinsic value falling above the current price, indicating the company is undervalued at the present time.

Be sure to check out previous ModernGraham valuations of Yahoo! Inc. (YHOO) for greater perspective!

Read the full valuation on Seeking Alpha!

YHOO Chart

YHOO data by YCharts

Disclaimer:  The author did not hold a position in Yahoo! Inc. (YHOO) at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

Yahoo Inc. Quarterly Valuation – November 2014 $YHOO

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After reviewing the data, Yahoo should satisfy the Enterprising Investor but not the Defensive Investor. The Defensive Investor is concerned with the lack of dividend payments as well as the high PEmg ratio, while the Enterprising Investor’s only issue with the company is the lack of dividends. Therefore, Enterprising Investors should feel very comfortable proceeding to the next part of the analysis, which is a determination of the company’s intrinsic value.

From a valuation side of things, the company has grown its EPSmg (normalized earnings) from $0.57 in 2010 to an estimated $1.64 for 2014. This is a very strong and impressive level of demonstrated growth which is in line with the market’s implied estimate for earnings growth of 11.28% over the next 7-10 years. In fact, actual historical growth is about 38% per year, clearly unsustainable, but the market is aware of that and has priced in a drop in the level of growth. The ModernGraham valuation model therefore returns an estimate of intrinsic value falling within a margin of safety relative to the current price, indicating the company is fairly valued at the present time.

Be sure to check out previous ModernGraham valuations of Yahoo Inc. for more perspective!

Read the full valuation on Seeking Alpha!

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Disclaimer:  The author did not hold a position in Danaher Corporation (DHR) or in any other company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

Yahoo Inc. Quarterly Valuation – August 2014 $YHOO

200px-Yahoo!_logo.svgBenjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 5 Undervalued Companies for the Enterprising Investor Near 52 Week Lows.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Yahoo Inc. (YHOO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Yahoo! Inc. (Yahoo!), is a global technology company. Through the Company’s technology and insights, Yahoo! delivers digital content and experiences, across devices and globally. The Company provides online properties and services (Yahoo! Properties) to users, as well as a range of marketing services designed to reach and connect with those users on Yahoo! and through a distribution network of third-party entities (Affiliates). These Affiliates integrate its advertising offerings into their Websites or other offerings (those Websites and other offerings, Affiliate sites). Its offerings to users on Yahoo! Properties fall into three categories: Communications and Communities, Search and Marketplaces, and Media. Effective July 11, 2014, Yahoo acquired RayV Inc, a Los Angeles-based provider of video streaming services.
YHOO Chart

YHOO data by YCharts

Defensive Investor – must pass at least 6 of the following 7 tests: Score = 4/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – has paid a dividend for at least 10 straight years – FAIL
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  6. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – FAIL
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $36.19
MG Value $56.72
MG Opinion Undervalued
Value Based on 3% Growth $21.36
Value Based on 0% Growth $12.52
Market Implied Growth Rate 8.03%
NCAV $0.39
PEmg 24.56
Current Ratio 3.48
PB Ratio 2.84

Balance Sheet – 6/30/2014

Current Assets $4,157,700,000
Current Liabilities $1,193,800,000
Total Debt $1,293,600,000
Total Assets $16,456,800,000
Intangible Assets $5,058,000,000
Total Liabilities $3,764,800,000
Outstanding Shares 995,680,000

Earnings Per Share

2014 (estimate) $0.92
2013 $1.28
2012 $3.28
2011 $0.82
2010 $0.90
2009 $0.42
2008 $0.30
2007 $0.47
2006 $0.52
2005 $1.28
2004 $0.58

Earnings Per Share – ModernGraham

2014 (estimate) $1.47
2013 $1.61
2012 $1.57
2011 $0.67
2010 $0.57
2009 $0.47

Dividend History

Yahoo does not pay dividends.

Conclusion:

Yahoo Inc. is suitable for the Enterprising Investor but not the Defensive Investor.  The Defensive Investor has concerns regarding the company’s lack of dividend payments, insufficient growth over the last ten years, and the high PEmg and PB ratios.  The Enterprising Investor’s only concern is the lack of dividend payments.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with research into the company and comparing it to other opportunities including a review of ModernGraham’s valuation of Microsoft Corporation (MSFT) and ModernGraham’s valuation of Google Inc. (GOOG).  As for a valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.57 in 2010 to an estimated $1.47 for 2014.  This level of demonstrated growth outpaces  the market’s implied estimate of 8.03% earnings growth and leads the ModernGraham valuation model, based on Benjamin Graham’s formula, to return an estimate of intrinsic value above the price.

Be sure to check out the previous ModernGraham valuations of Yahoo Inc. (YHOO) for more perspective!

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Yahoo Inc. (YHOO)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in Yahoo Inc. (YHOO) or in any other company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

Company of the Week: Yahoo! Inc. (YHOO)

image (12)The ModernGraham approach to investing has multiple layers to it.  Regular readers will be familiar with the first two steps; the first is to determine if the company is suitable for the Defensive Investor or the Enterprising Investor, and the second is to compare the price to the intrinsic value through quantitative analysis.  The next step in the analysis is to review the company’s management and other qualitative factors to determine how the company may compare to other companies that pass the first two steps.  In this Company of the Week series, we will delve into more detail about a specific company that performed well in the first two areas.  This week, the company chosen, Yahoo! Inc., is currently significantly undervalued based on the ModernGraham valuation model.

Results of Recent Valuation

Please be sure to review ModernGraham’s latest valuation of Coach Inc. in detail, but here is also a summary:

Yahoo Inc. is suitable for Enterprising Investors but not Defensive Investors.  The Defensive Investor is concerned with the lack of dividend payments as well as the high PEmg and PB ratios.  The Enterprising Investor is also concerned with the lack of dividend payments, but the company passes all of the investor type’s other requirements.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and its competitors, including a review of Microsoft Corp (MSFT) and Google Inc. (GOOG).  As for the valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.57 in 2010 to an estimated $1.54 for 2014.  This level of demonstrated growth is greater than the market’s implied estimate of 6.60% earnings growth and leads the ModernGraham valuation model to return an estimate of intrinsic value that is well above the market price.

Further Analysis

Price trend compared to the market

In the following chart, it is clear that in the past 18 months the company has seen a very strong rise in price from Mr. Market, but over the long-term view the company continues to trail the market overall.  This is in line with some of the business struggles Yahoo has seen over the last ten years (primarily increased competition in the rise of Google), but it does show that Mr. Market is responding very quickly to recent changes.  Intelligent Investors know that the price trend has nothing to do with value, but this portion of an analysis can be useful in trying to understand Mr. Market’s movements.

YHOO Chart

YHOO data by YCharts

Earnings Per Share

The next chart shows Yahoo’s earnings over the last 10 years.  Overall the earnings would appear to have been someone flat, but there certainly has been a slow rise.  In addition, it is always important to take into consideration average earnings rather than earnings from a single year.  On ModernGraham, we utilize a weighted average of the last five years (called EPSmg).  With Yahoo, that figure has risen from $0.47 in 2009 to a peak of $1.61 in 2013 and is only expected to dip to $1.54 for 2014.  This is a strong level of demonstrated growth that could be very profitable if the company can continue to maintain it.

YHOO EPS Diluted (TTM) Chart

YHOO EPS Diluted (TTM) data by YCharts

Price to Book

In one final confirmation that Yahoo would seem to be an excellent value at this point in time, the price to book ratio is well below where it has normally been seen in the last 10 years, though it is higher than it has been in most of the last 5 years.  As a result, it is possible we could see Mr. Market turn around and start pricing the company higher.YHOO Price to Book Value Chart

YHOO Price to Book Value data by YCharts

ModernGraham Conclusion

Yahoo is a very intriguing company for Enterprising Investors to consider.  In addition, the quantitative analysis shows the company to be significantly undervalued, though the lack of dividends is frustrating to value investors.  It is possible that Mr. Market has overreacted to any perceived troubles the company has had in the recent past, speculating that the company had been overrun by more recent tech startups.  However, as has been seen time and time again, large companies often have the resources to weather the ebbs and flows of business competition and that may be the case with Yahoo as well.

Management Tenets

Warren Buffett has promoted looking at some key management tenets, and I’d like to leave it up to readers to discuss how Yahoo! fulfills (or fails to fulfill) these qualities.  Please discuss the following in the comments below:

  1. Is the business simple and understandable?
  2. Does the business have a consistent operating history?
  3. Does the company have favorable long-term prospects?
  4. Is management rational?
  5. Is management candid with shareholders?

Disclosure:  The author did not hold a position in any company mentioned in the article at the time of publication and had no intention of changing that position within the next 72 hours.

Yahoo! Inc. (YHOO) Quarterly Valuation – May 2014

200px-Yahoo!_logo.svgBenjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing 5 Undervalued Companies for the Enterprising Investor.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Yahoo Inc. (YHOO) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Yahoo! Inc. (Yahoo!) is a global technology company. Through the Company’s technology and insights, Yahoo! delivers digital content and experiences, across devices and globally. The Company provides online properties and services (Yahoo! Properties) to users, as well as a range of marketing services designed to reach and connect with those users on Yahoo! and through a distribution network of third-party entities (Affiliates). These Affiliates integrate its advertising offerings into their Websites or other offerings (those Websites and other offerings, Affiliate sites). Effective January 7, 2014, Yahoo Inc acquired Aviate. Effective January 24, 2014, Yahoo Inc acquired Cloud Party Inc. In February 2014, Yahoo! Inc announced the expansion of its Champaign, IL technology hub. Effective February 11, 2014, Yahoo! Inc acquired Wander LLC. Effective February 14, 2014, Yahoo! Inc acquired Distill. Effective May 13, 2014, the Company acquired Meh Labs Inc.

YHOO Chart

YHOO data by YCharts

Defensive Investor – must pass at least 6 of the following 7 tests: Score = 4/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – has paid a dividend for at least 10 straight years – FAIL
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  6. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – FAIL
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $34.17
MG Value $59.42
MG Opinion Undervalued
Value Based on 3% Growth $22.38
Value Based on 0% Growth $13.12
Market Implied Growth Rate 6.82%
NCAV $0.79
PEmg 22.14
Current Ratio 3.75
PB Ratio 2.68

Balance Sheet – 3/31/2014

Current Assets $4,481,900,000
Current Liabilities $1,194,900,000
Total Debt $1,234,100,000
Total Assets $16,592,900,000
Intangible Assets $5,092,700,000
Total Liabilities $3,687,700,000
Outstanding Shares 1,010,730,000

Earnings Per Share

2014 (estimate) $1.13
2013 $1.28
2012 $3.28
2011 $0.82
2010 $0.90
2009 $0.42
2008 $0.30
2007 $0.47
2006 $0.52
2005 $1.28
2004 $0.58

Earnings Per Share – ModernGraham

2014 (estimate) $1.54
2013 $1.61
2012 $1.57
2011 $0.67
2010 $0.57
2009 $0.47

Conclusion:

Yahoo Inc. is suitable for Enterprising Investors but not Defensive Investors.  The Defensive Investor is concerned with the lack of dividend payments as well as the high PEmg and PB ratios.  The Enterprising Investor is also concerned with the lack of dividend payments, but the company passes all of the investor type’s other requirements.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and its competitors, including a review of Microsoft Corp (MSFT) and Google Inc. (GOOG).  As for the valuation, the company appears to be undervalued after growing its EPSmg (normalized earnings) from $0.57 in 2010 to an estimated $1.54 for 2014.  This level of demonstrated growth is greater than the market’s implied estimate of 6.82% earnings growth and leads the ModernGraham valuation model to return an estimate of intrinsic value that is well above the market price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Yahoo Inc. (YHOO)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

If you like our valuations, why not check out ModernGraham Stocks & Screens?  It’s a great way to review the valuations while screening for things like low PE ratio, undervalued companies, etc.!

Disclaimer:  The author did not hold a position in Yahoo Inc. (YHOO) or in any other company mentioned in the article at the time of publication and had no intention of changing that position within the next 72 hours.

Logo taken from wikipedia; this article is not affiliated with the company in any manner.

Yahoo! Inc. (YHOO) Quarterly Valuation

Executive Summary

  • Yahoo is suitable for the Enterprising Investor, but not the Defensive Investor.
  • The market is implying an earnings growth estimate of 7.38%, below the historically demonstrated growth.
  • The company is undervalued at this time based on the ModernGraham valuation model.
  • Enterprising Investors should feel comfortable proceeding with further research.

_________________________________

200px-Yahoo!_logo.svg

Yahoo has seen a resurgence in its stock price lately, and for some that may lead to a conclusion that it is not a “value” play at this time; but value does not have to do with how the stock has performed recently.  Rather, value simply occurs when the market price is significantly below the intrinsic value of the company.  Whether it is a good time to buy, given Mr. Market’s recent tendencies is another matter, one which is beyond the scope of this discussion.  Intelligent Investors focus primarily on fundamental analysis and factual data, in an effort to eliminate risk and speculation.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Yahoo! Inc. fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Yahoo! Inc. (Yahoo is a global technology company. Through the Company’s technology and insights, Yahoo! delivers digital content and experiences, across devices and globally. The Company provides online properties and services (Yahoo! Properties) to users, as well as a range of marketing services designed to reach and connect with those users on Yahoo! and through a distribution network of third-party entities (Affiliates). These Affiliates integrate its advertising offerings into their Websites or other offerings (those Websites and other offerings, Affiliate sites). The Company generates revenue from the display of graphical advertisements (display advertising), the display of text-based links to advertisers’ Websites (search advertising), and other sources. Effective January 7, 2014, Yahoo Inc acquired Aviate. Effective January 24, 2014, Yahoo Inc acquired Cloud Party Inc. In February 2014, Yahoo! Inc announced the expansion of its Champaign, IL technology hub.

YHOO Chart

YHOO data by YCharts

Defensive Investor – must pass at least 6 of the following 7 tests: Score = 4/7

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Sufficiently Strong Financial Condition – current ratio greater than 2 – PASS
  3. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  4. Dividend Record – has paid a dividend for at least 10 straight years – FAIL
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – PASS
  6. Moderate PEmg ratio – PEmg is less than 20 – FAIL
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – FAIL

Enterprising Investor – must pass at least 4 of the following 5 tests or be suitable for a defensive investor: Score = 4/5

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5 – PASS
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1 – PASS
  3. Earnings Stability – positive earnings per share for at least 5 years – PASS
  4. Dividend Record – currently pays a dividend – FAIL
  5. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $37.76
MG Value $62.50
MG Opinion Undervalued
Value Based on 3% Growth $23.54
Value Based on 0% Growth $13.80
Market Implied Growth Rate 7.38%
NCAV $1.14
PEmg 23.26
Current Ratio 2.99
PB Ratio 3.06

Balance Sheet – 9/30/2013

Current Assets $3,566,200,000
Current Liabilities $1,193,100,000
Total Debt $121,200,000
Total Assets $14,905,700,000
Intangible Assets $5,132,200,000
Total Liabilities $2,411,600,000
Outstanding Shares 1,013,060,000

Earnings Per Share

2013 $1.31
2012 $3.28
2011 $0.82
2010 $0.90
2009 $0.42
2008 $0.30
2007 $0.47
2006 $0.52
2005 $1.28
2004 $0.58
2003 $0.19

Earnings Per Share – ModernGraham 

2013 $1.62
2012 $1.57
2011 $0.67
2010 $0.57
2009 $0.47
2008 $0.54

Conclusion:

Yahoo! Inc. is a very attractive company for Enterprising Investors, as it passed all of the investor type’s requirements except the dividend payments.  The Defensive Investor is not as interested, due to the lack of dividend payments and the high PEmg and PB ratios.  Value investors seeking to follow the Enterprising Investor portion of the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research.  An example of further research may include a review of ModernGraham’s valuation of Microsoft and ModernGraham’s valuation of Google.  From a valuation perspective, Yahoo has grown its EPSmg (normalized earnings) from $0.54 in 2008 to $1.62 for 2013.  This is a very strong level of growth that outpaces the market’s implied estimate for growth of 7.38%.  The ModernGraham valuation model consequently estimates an intrinsic value that is well above the market’s current price, and the company would appear to be undervalued.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Yahoo! Inc. (YHOO)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

If you like our valuations, why not check out ModernGraham Stocks & Screens?  It’s a great way to review the valuations while screening for things like low PE ratio, undervalued companies, etc.!

Disclaimer:  The author did not hold a position in Yahoo! Inc. (YHOO) or any of the other companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours.

Logo taken from the Wikipedia; this article is not affiliated with the company in any manner.

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