Task #1: Examine the spreadsheet titled "Multiples analysis." At what multiples was Yahoo trading before Microsoft's bid? Consider each of the multiples mentioned in the preceding paragraph Yahoo! Inc. Multiples analysis 750 2.34 Yahoo Comparable(?) firms Time 5 As of 12/31/07: Pre-bid At bid Google Disney Warner 6 Price per share ($) 19.18 31.00 550.52 28.80 15.23 7 Number of shares (millions) 1408 1408 328.7 2005 3661 8 Stock market capitalization (Smm 27005 43648 180956 57744 55757 9 Long-term debt 750 611 18784 63101 10 Enterprise value (market value) 27755 44398 181567 76528 118858 11 12 Key FY 2007 metrics: 13 Book value of assets 12230 12230 25336 60928 133830 14 Revenues ($mm) 6969 6969 16594 35510 46482 15 Earnings (Smm) 660 660 4204 4687 4387 16 EPS 0.47 0.47 12.79 1.20 17 EBITDA 1499 1499 6052 9325 13359 18 Cash flow from operations** ($mr 1310 1310 5775 5421 8475 19 20 Key multiples: 21 Market value/Book value 1.3 0.9 22 Market value/Revenues 4.0 10.9 2.2 2.6 23 Enterprise value to EBITDA 18.5 29.6 30.0 8.2 8.9 24 Enterprise value to cash flow 21.2 33.9 31.4 14.1 14.0 25 P/E (price to EPS) 40.9 43.0 12.3 12.7 26 27 Defined here as pre-tax income plus depreciation 28 " Defined here as PAT plus depreciation 29 30 (Other comparables could include eBay, QuickLogic Corp, News Corp) 2.3 7.2 66.1 Task #1: Examine the spreadsheet titled "Multiples analysis." At what multiples was Yahoo trading before Microsoft's bid? Consider each of the multiples mentioned in the preceding paragraph Yahoo! Inc. Multiples analysis 750 2.34 Yahoo Comparable(?) firms Time 5 As of 12/31/07: Pre-bid At bid Google Disney Warner 6 Price per share ($) 19.18 31.00 550.52 28.80 15.23 7 Number of shares (millions) 1408 1408 328.7 2005 3661 8 Stock market capitalization (Smm 27005 43648 180956 57744 55757 9 Long-term debt 750 611 18784 63101 10 Enterprise value (market value) 27755 44398 181567 76528 118858 11 12 Key FY 2007 metrics: 13 Book value of assets 12230 12230 25336 60928 133830 14 Revenues ($mm) 6969 6969 16594 35510 46482 15 Earnings (Smm) 660 660 4204 4687 4387 16 EPS 0.47 0.47 12.79 1.20 17 EBITDA 1499 1499 6052 9325 13359 18 Cash flow from operations** ($mr 1310 1310 5775 5421 8475 19 20 Key multiples: 21 Market value/Book value 1.3 0.9 22 Market value/Revenues 4.0 10.9 2.2 2.6 23 Enterprise value to EBITDA 18.5 29.6 30.0 8.2 8.9 24 Enterprise value to cash flow 21.2 33.9 31.4 14.1 14.0 25 P/E (price to EPS) 40.9 43.0 12.3 12.7 26 27 Defined here as pre-tax income plus depreciation 28 " Defined here as PAT plus depreciation 29 30 (Other comparables could include eBay, QuickLogic Corp, News Corp) 2.3 7.2 66.1
