Yahoo!

Financial status and Market Value.

Presented by:
Sami Elkurdi 20122608

About Yahoo!

Inc.

Founded in 1994, Yahoo! Inc. is an internet content and digital media company. Through its proprietary technology, the company delivers personalized digital content and experiences, via the Internet and electronic devices. The company based in Sunnyvale, California. The company owns products like Web portal, search engine Yahoo Search, and related services, including Yahoo Directory, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Groups, Yahoo Answers, advertising, online mapping, video sharing, fantasy sports and its social media website.

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Yahoo grew rapidly throughout the 1990s. Like many search engines and Web directories, Yahoo added a web portal. It also made many high-profile acquisitions. Its stock price skyrocketed during the dot-com bubble, Yahoo stocks closing at an all-time high of $118.75 a share on January 3, 2000. However, after the dot-com bubble burst, it reached a post-bubble low of $8.11 on September 26, 2001. As of January 2010, Yahoo held the world's largest market share in online display advertising. JP Morgan put the company's United States market share for display ads at 17%, well ahead of No. 2 Microsoft at 11% and AOL at 7%. But in 2011, Yahoo lost the top spot to Facebook.

business strategy
As a mission, the company is focused on making the users daily internet and device habits inspiring and entertaining while connecting advertisers with audience. Yahoo! Inc. has offices located throughout the Americas, Asia Pacific, and the Europe, Middle East regions. Yahoo offers a multi-lingual interface. The site is available in over 20 languages. The official directory for all of the Yahoo International sites is world.yahoo.com. The company's international sites are wholly owned by Yahoo, with the exception of its Japan and China sites.

YAHOO! services
Yahoo Search Marketing provides services such as Sponsored Search, Local Advertising and Product/Travel/Directory Submit that let different businesses advertise their products and services on the Yahoo network. Yahoo offers shopping services such as Yahoo Shopping, Yahoo Autos, Yahoo Real Estate and Yahoo Travel, which enables users to gather relevant information and make commercial transactions and purchases online. Yahoo Mobile offers services for email, instant messaging, and mobile blogging, as well as information services, searches and alerts. Services for the camera phone include entertainment and ring tones.

How Yahoo! Earning money.

About 88% of revenues for the fiscal year 2009 came from marketing services. The largest segment of it was from search advertising, where advertisers bid for search terms to display their ads on the search results; on average Yahoo makes 2.5 cents to 3 cents from each search. Other forms of advertising that bring in revenue for Yahoo include display and contextual advertising.

Financial status
Yahoo! Inc. (YHOO) -NasdaqGS 33.08 0.02(0.06%) Oct 24, 4:00PM EDT|After Hours: 32.93 0.15 (0.45%) Oct 24, 7:59PM EDT

Prev Close: Open: Bid: Ask: 1y Target Est: Beta: Next Earnings Date:

33.10 33.26 32.90 x 100 33.50 x 500 34.85 1.03

Day's Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div & Yield:

32.81 - 33.31 16.52 - 35.06 15,086,728 17,703,600 34.46B 28.54 1.16 N/A (N/A)

N/A

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Up 103% over 12 months, Yahoo! Inc. has a market cap of $34.53 billion; its shares were traded at around $33.84 with a P/E ratio of 9.70 and a P/B of 2.50. Yahoo! Inc. reported revenue of $1.13 billion for the third quarter of 2013, down 5% year over year. The companys adjusted EBITDA was reported at $331 million for the third quarter, marking a decrease of 19% year over year. Yahoos balance sheet shows around $3.2 billion as of Sept. 30, 2013, down from $6 billion at years end in 2012.

Key Statistics
Value Measures Market Capitalization Enterprise Value (October 30, 2013) Trailing P/E (ttm, intrady) Forward P/E (fye Dec 31, 2014) PEG Ratio (5years expected) Price/ Sales (ttm) Price/ Book (mrq) Enterprise Value/ Revenue (ttm) Billion Dollars($) 345.74 298.60 28.20 19.87 1.43 6.03 4.13 5.20

Enterprise Value/ EBITDA (ttm)

16.97

Financial Highlight
FISCAL Fiscal Year Ends: Most Recent Quarter (mrq) PROFITABILITY Profit Margin (ttm) 21.66% December, 31 September 30, 2013

Operating Margin (ttm) MANAGEMENT EFFECTIVENESS

Revenue on Assets (ttm) Return on Equity (ttm) INCOME STATEMENT Revenue (ttm) Revenue per share (ttm) Quarterly Revenue Growth(yoy) Gross Profit (ttn)

24.07%
18.86% 18.55% BILLION DOLLARS ($) 57.39 173.10 11.90% 29.54

BILLION DOLLARS ($)

EBITDA (ttm) Net Income

Diluted EPS (ttm) Quarterly Earnings Growth

17.60 11.74
36.75 36.50% BILLION DOLLARS ($)

BALANCE SHEET
Total Cash (mrq)
Total Cash per share (mrq) Total Debt (mrq) Total Debt (mrq) Current Radio (mrq) Book Value per share (mrq)

54.74
163.83 7.14 8.60 4.76 248.35 BILLION DOLLARS ($) 18.09 7.48

CASH FLOW STATEMENT

Operating Cash Flow (ttm) Levered Free Cash Flow (ttm)

summary
The New York Times found that Yahoo was able to collect far more data about users than its competitors from its Web sites and advertising network. By one measure, on average Yahoo had the potential in December 2007 to build a profile of 2,500 records per month about each of its visitors. Yahoo has a 2-petabyte, specially built data warehouse that it uses to analyze the behavior of its half-billion Web visitors per month, processing 24 billion daily events. Yahoo has redesigned many of its services, including its mobile apps, and increased its personalization features so that individual visitors to Yahoo sites will see different content based on what Yahoo knows about their interests. By contrast, the U.S. online-advertising market grew by 15% last year, according to the Interactive Advertising Bureau, a trade group. Rivals such as Web-search giant GoogleGOOG +1.72%, social network FacebookFB 1.69%, micro-blogging service Twitter and Web-radio service Pandora have been garnering an increasing share of marketers budgets while Yahoos growth has faltered.

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