Search This Blog

Friday, September 19, 2014

$yhoo common sense valuation

With BABA being valued at $150B, the market trading history suggested Yahoo was worth about $40/share. 

Alibaba is now valued around $220B. 

Yahoo is collecting over $8B in cash (excluding taxes), and it's remaining BABA position is now worth $35B.

There is an absurdly obvious arbitrage pricing trade here. Considering YHOO's market cap is $41B.

No comments:

Post a Comment