NASDAQ:YHOO
$16.44
(3/19 4:00PM)
-0.7%
| Open | $16.62 |
Mkt Cap | $23.0 Billion |
| High | $16.81 |
52Wk High | $18.02 |
| Low | $16.34 |
52Wk Low | $12.60 |
| Volume | 17.9 Million |
Avg Vol 10D | 20.2 Million |
YHOO Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at YHOO through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 10.76x and 5.21x respectively.
Utilizing this range we can see that YHOO’s current Price to Sales per share ratio of 3.57x is significantly below its average levels historically. In fact, with a current price of $16.44, YHOO is a full 56% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for YHOO.
YHOO Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. YHOO is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for YHOO, the current level of Cash Earnings compared to its historical levels helps identify where YHOO is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 43.45 and a historical low Cash Earnings per share ratio of 21.84, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for YHOO? From the Ockham perspective, we are looking specifically at YHOO to see if the market is recognizing the huge disparity between YHOO's past stock price to Cash Earnings ratio to today's levels. At a difference of 47% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at YHOO. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
YHOO Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for YHOO to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. YHOO may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As YHOO more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
Bullish/Bearish: Sentiment and YHOO Discussed on Zero Hedge
Zero Hedge talked about the sentiment surrounding YHOO and the way they are perceived in the marketplace.
It is also notable that we have recently upgraded this stock on Saturday, March 06, 2010 because YHOO is more attractive in many of the valuation metrics we evaluate. At present, Ockham has a valuation stance of Undervalued on YHOO, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. In comparison to the other stocks that we follow, Yahoo!, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Yahoo!, Incorporated underperforming.
“… YAHOO. com/news/FedEx-sees-economic-recovery-apf-1665077956. html? x=0 Equities just don't stop rallying. Bearish News Homebuilding Sentiment takes a leg lower as due home ... …”
YHOO in Developing Markets on Power Lunch
There is no doubt that the emerging markets are where the growth is right now. The latest news mention of YHOO on Power Lunch was in relation to emerging markets.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about YAHOO!, INC.
Learn About RazorWire?Tech Trader Daily-Barron's: Topics Include Emerging Markets and YHOO
News related to emerging markets affecting Yahoo!, Incorporated today, and Tech Trader Daily-Barron's discussed some recent developments.
The crowd at The Motley Fool does not like YHOO and believes that it will Underperform. We consider YHOO as Undervalued at the current price of $16.47. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The improving valuation of Yahoo!, Incorporated has prompted us to upgrade this stock as of Saturday, March 06, 2010. In comparing news flow statistics for the various companies we follow through RazorWire, we can tell you that YHOO ranks just about where it normally does.
“… ” Tencent has a market cap of more than $38 billion, which is almost twice the size of BIDU - and bigger than YAHOO or eBay. …”
Bloomberg News: Get Plugged into YHOO News Regarding The CEO
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about YHOO management on Bloomberg News.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Bloomberg News said about YAHOO!, INC.
Learn About RazorWire?Fox Business: Get Plugged into YHOO News Regarding The CEO
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about YHOO management on Fox Business.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Fox Business said about YAHOO!, INC.
Learn About RazorWire?News on YHOO From the Pundits on Tech Trader Daily-Barron's
News has broken via the television and viral blogs regarding YHOO, so investors should take an interest in learning what was said.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, March 06, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; YHOO has received less coverage from the financial media in business television and blogs. Based on our methodology, Yahoo!, Incorporated should hold some appeal to value investors as we view it as Undervalued.
“… YAHOO (YHOO) fell to 14. 1%, from 14. 5%. AOL (AOL) fell to 2. 3%, from 2. 5%. Ask. com (IACI) was steady at 1. 9%. While the exact number are slightly different than those ... …”
Closing Bell Covers Yahoo!, Incorporated and Regulators in Same Segment
Regulatory issues are always of interest to investors. Recently Closing Bell covered topics including regulators and Yahoo!, Incorporated.
Based on our methodology, Yahoo!, Incorporated should hold some appeal to value investors as we view it as Undervalued. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, March 06, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; YHOO has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.
“… Billboard, everywhere and any pullback from google opens the door for microsoft and bing, their search engine, which also benefits through the backdoor, YAHOO! . …”
Yahoo!, Incorporated Was Talked About by Tech Trader Daily-Barron's
As always, the latest news on YHOO is available to Ockham clients through RazorWire, and it was mentioned recently on Tech Trader Daily-Barron's.
Based on our methodology, Yahoo!, Incorporated should hold some appeal to value investors as we view it as Undervalued. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, March 06, 2010. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; YHOO has received less coverage from the financial media in business television and blogs.
“… YAHOO (YHOO) may be planning to buy Citizen Sports, a San Francisco-based maker of sports-related apps and games for the iPhone and Facebook, AllThingsD reports. …”
Squawk Box Has News on YHOO
Yahoo!, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk Box.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, YHOO has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like YHOO and believes that it will Underperform. We consider YHOO as Undervalued at the current price of $16.46. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The improving valuation of Yahoo!, Incorporated has prompted us to upgrade this stock as of Saturday, March 06, 2010.
“… "the wall street journal" reports that YAHOO! Will likely acquire an online sports site this weeks. The company is said to by citizens sports. …”
Delevoping Economies and Where YHOO Fits In on Closing Bell
For growth, there is nowhere growing more rapidly than emerging markets. Recently, Closing Bell talked about emerging markets and their impact on Yahoo!, Incorporated.
Based on our methodology, Yahoo!, Incorporated should hold some appeal to value investors as we view it as Undervalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Please have a look at our report for our reasons to upgrade the stock to Undervalued on our report dated Saturday, March 06, 2010. We noticed recently that in comparison to all other stocks we analyze in the news; YHOO has received less coverage from the financial media in business television and blogs.
“… Around in the conventional way which is to approach google with open arms, but if google leaves and it does seem it is headed that way, then china is more receptive to microsoft ... …”