Price to Earnings (P/E)
since 2005
Calculation
Yahoo! Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to Yahoo! Inc.1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2017 | — | = | 46.24 | ÷ | -0.22 | -0.22 | = | -214,321 | ÷ | 956,487,217 | |
| Feb 29, 2016 | — | = | 31.79 | ÷ | -4.60 | -4.60 | = | -4,359,082 | ÷ | 946,811,547 | |
| Feb 27, 2015 | 5.51 | = | 44.28 | ÷ | 8.03 | 8.03 | = | 7,521,731 | ÷ | 936,120,954 | |
| Feb 28, 2014 | 28.57 | = | 38.67 | ÷ | 1.35 | 1.35 | = | 1,366,281 | ÷ | 1,009,392,339 | |
| Mar 1, 2013 | 6.12 | = | 21.94 | ÷ | 3.58 | 3.58 | = | 3,945,479 | ÷ | 1,101,295,389 | |
| Feb 29, 2012 | 17.16 | = | 14.83 | ÷ | 0.86 | 0.86 | = | 1,048,827 | ÷ | 1,213,749,472 | |
| Feb 28, 2011 | 17.44 | = | 16.40 | ÷ | 0.94 | 0.94 | = | 1,231,663 | ÷ | 1,309,412,235 | |
| Feb 26, 2010 | 35.85 | = | 15.31 | ÷ | 0.43 | 0.43 | = | 597,992 | ÷ | 1,400,201,879 | |
| Feb 27, 2009 | 43.47 | = | 13.23 | ÷ | 0.30 | 0.30 | = | 424,298 | ÷ | 1,394,201,105 | |
| Feb 27, 2008 | 57.48 | = | 28.37 | ÷ | 0.49 | 0.49 | = | 660,000 | ÷ | 1,337,165,049 | |
| Feb 23, 2007 | 57.95 | = | 32.10 | ÷ | 0.55 | 0.55 | = | 751,391 | ÷ | 1,356,539,645 | |
| Mar 3, 2006 | 23.52 | = | 31.45 | ÷ | 1.34 | 1.34 | = | 1,896,230 | ÷ | 1,417,852,971 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Yahoo! Inc. Annual Report.
The financial data indicates a period of significant volatility in valuation metrics, characterized by a lack of stable correlation between share price and earnings per share (EPS). While the share price experienced fluctuations, the Price to Earnings (P/E) ratio showed extreme variance, reflecting shifting market sentiment and inconsistent profitability.
- Valuation Peaks and Contractions
- A substantial increase in the P/E ratio is observed between 2006 and 2007, rising from 23.52 to a peak of 57.95. This spike coincided with a significant decrease in EPS, which fell from 1.34 to 0.55, suggesting that the market maintained high price expectations despite declining earnings. Subsequently, a long-term contraction in the P/E ratio occurred, reaching a low of 6.12 by 2013.
- Earnings Volatility and Divergence
- Earnings per share exhibited severe instability, ranging from a high of 8.03 in 2015 to a low of -4.60 in 2016. A notable divergence is evident in the final years of the period; despite the share price increasing to its highest level of 46.24 in 2017, the company reported negative earnings in both 2016 and 2017. This disconnect suggests that the share price was being driven by factors other than trailing earnings.
- P/E Ratio Sustainability
- The P/E ratio became unavailable in the final two years of the analysis due to negative EPS values. This transition from a low positive P/E of 5.51 in 2015 to undefined values in 2016 and 2017 marks a shift from undervalued earnings to net losses, indicating a deterioration in fundamental profitability despite the upward movement in share price.
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Comparison to Competitors
Yahoo! Inc., P/E, long-term trends, comparison to competitors
| Yahoo! Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2017 | — | 18.07 | 46.80 | — | 40.53 | — | 14.29 | 29.60 | 26.08 | 18.53 | — | — | — | — | 33.71 | — |
| Feb 29, 2016 | — | 22.75 | 70.59 | — | 25.14 | — | 9.65 | 63.89 | 30.63 | 17.92 | — | — | — | — | 30.45 | — |
| Feb 27, 2015 | 5.51 | 17.46 | 132.73 | — | 34.03 | — | 13.55 | 26.44 | 16.11 | 16.33 | — | — | — | — | 25.00 | — |
| Feb 28, 2014 | 28.57 | 15.20 | 104.21 | — | 26.30 | — | 11.58 | 21.73 | 12.14 | 12.78 | — | — | — | — | 24.68 | — |
| Mar 1, 2013 | 6.12 | 17.95 | 22.73 | — | 9.11 | — | 13.37 | 22.37 | 14.40 | 13.61 | — | 6,057.94 | — | — | 26.53 | — |
| Feb 29, 2012 | 17.16 | 17.60 | 18.49 | — | 44.80 | — | 14.47 | 22.53 | 10.03 | 19.17 | — | — | 251.73 | — | 17.51 | — |
| Feb 28, 2011 | 17.44 | 17.62 | 22.05 | — | 20.39 | — | 13.32 | 24.82 | 11.91 | 17.66 | — | — | 118.88 | — | 17.09 | — |
| Feb 26, 2010 | 35.85 | 17.45 | 46.62 | — | — | — | 12.24 | 20.01 | 14.56 | 19.25 | — | — | 87.39 | — | 18.86 | — |
| Feb 27, 2009 | 43.47 | 13.74 | 11.84 | — | — | — | 9.40 | 20.68 | 13.28 | 19.44 | — | — | 388.13 | — | 13.55 | — |
| Feb 27, 2008 | 57.48 | 24.38 | 27.23 | — | 10.43 | — | 15.20 | 21.92 | 74.58 | 23.58 | — | — | 10,271.10 | — | 29.39 | — |
| Feb 23, 2007 | 57.95 | 26.95 | 44.72 | — | 41.15 | — | 14.90 | 27.35 | 63.21 | 23.43 | — | — | 151.60 | — | 156.86 | — |
| Mar 3, 2006 | 23.52 | 24.06 | 38.61 | — | 103.88 | — | 15.85 | 21.02 | 70.27 | 23.70 | — | — | 207.38 | — | — | — |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Yahoo! Inc., P/E, long-term trends, comparison to sector (software & services)
| Yahoo! Inc. | Software & Services | |
|---|---|---|
| Mar 1, 2017 | — | 23.96 |
| Feb 29, 2016 | — | 23.38 |
| Feb 27, 2015 | 5.51 | 18.36 |
| Feb 28, 2014 | 28.57 | 14.09 |
| Mar 1, 2013 | 6.12 | 14.97 |
| Feb 29, 2012 | 17.16 | 13.91 |
| Feb 28, 2011 | 17.44 | 14.04 |
| Feb 26, 2010 | 35.85 | 15.17 |
| Feb 27, 2009 | 43.47 | 13.87 |
| Feb 27, 2008 | 57.48 | 43.67 |
| Feb 23, 2007 | 57.95 | 39.59 |
| Mar 3, 2006 | 23.52 | 44.69 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Yahoo! Inc., P/E, long-term trends, comparison to industry (information technology)
| Yahoo! Inc. | Information Technology | |
|---|---|---|
| Mar 1, 2017 | — | 19.69 |
| Feb 29, 2016 | — | 16.54 |
| Feb 27, 2015 | 5.51 | 17.14 |
| Feb 28, 2014 | 28.57 | 14.15 |
| Mar 1, 2013 | 6.12 | 14.37 |
| Feb 29, 2012 | 17.16 | 13.71 |
| Feb 28, 2011 | 17.44 | 15.08 |
| Feb 26, 2010 | 35.85 | 21.50 |
| Feb 27, 2009 | 43.47 | 15.83 |
| Feb 27, 2008 | 57.48 | 36.48 |
| Feb 23, 2007 | 57.95 | 32.07 |
| Mar 3, 2006 | 23.52 | 33.76 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).