Wednesday, July 22, 2015

So there is something that I am missing. This is a dead company right? There’s no value there at all. Clearly zero value - right?

Why?

There are roughly 975 million shares outstanding and the market price for shares is roughly $40. So, Yahoo has a market value of roughly $38 billion dollars.

The balance sheet indicates that there are assets of roughly $39 billion which are related to cash and cash equivalents, Short and Long Term investments and stakes in Ali Baba and Yahoo Japan. So that means that if Yahoo were to sell their assets they could come up with much of the cash to buy their firm from the shareholders.

Last night’s earnings release said that they had roughly the same dollars in the investments, cash and equity stakes that are displayed in the 10-Q in the balance sheet link above.

We also took a quick swipe at the non-financial firms in the S&P 500 to see who else had such a large investment portfolio. Below is a list of the top 10 firms with their available for sale securities from their filings at the end of the first quarter of 2015. We will update the table for the second quarter once all filings are in for the second quarter.

The best part about all of this is that it can be done by anyone by using Calcbench

Firm Available For Sale Securities (USD Billion)
Apple Inc 193.5
Microsoft Corp 107.4
Cisco Systems, Inc. 50.5
Yahoo Inc 37.75
Amgen Inc 26.7
Qualcomm Inc/DE 22.2
Merck & Co., Inc. 20.95
Automatic Data Processing Inc 20.5
Intel Corp 13.3
Gilead Sciences Inc 11.8
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