{"id":31442,"date":"2015-12-03T17:55:49","date_gmt":"2015-12-03T16:55:49","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=31442"},"modified":"2015-12-03T18:15:35","modified_gmt":"2015-12-03T17:15:35","slug":"31442","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/31442\/","title":{"rendered":"Udanchoo or Yahoo has No Value?"},"content":{"rendered":"

Key points of note re intrinsic value estimates \u00a0Udanchoo is a Hindu phrase for flyaway or disappear<\/p>\n

Venkat Subramaniam writes: I have calculated the intrinsic value of the operating assets using a DCF method, with source information from company financials (please see at appendix for the intrinsic value calculation for Alibaba, Yahoo Japan, and Yahoo\u2019s Core Business).<\/p>\n

The debt, cash, and non-operating assets have been taken from the most recent earnings reports available.<\/p>\n

I have applied a 2% discount to Alibaba and Yahoo Japan\u2019s intrinsic value to account for the fact Yahoo Inc\u2019s stake is trapped inside a corporate structure and cannot easily be crystallised. In the Yahoo Inc Consolidated column, I have added up the net value of equity based on Yahoo Inc\u2019s share of equity (15.4% for Alibaba, 35.5% for Yahoo Japan, and 100% for the Core Business).<\/p>\n

The value of employee stock options has been calculated using information available from the company financials, and using Black Scholes method.<\/p>\n

In conclusion \u2013 my value of intrinsic value for the Alibaba and Yahoo Japan business is comparable with the Market Cap for those business; and, after adding Yahoo\u2019s Core Business value, it appears that the market is pricing a 32% discount to intrinsic value. This discount needs to be compared with the estimated tax liability in order to identify any mispricing in the Market. \u00a0Yahoo’s Value<\/a><\/strong><\/p>\n

\"Yahoo!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Key points of note re intrinsic value estimates \u00a0Udanchoo is a Hindu phrase for flyaway or disappear Venkat Subramaniam writes: I have calculated the intrinsic value of the operating assets using a DCF method, with source information from company financials … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13,110],"tags":[],"class_list":["post-31442","post","type-post","status-publish","format-standard","hentry","category-finance","category-globalization"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t