Stock Analysis on Net

Yahoo! Inc. (NASDAQ:YHOO)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 9, 2017.

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Yahoo! Inc., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Net income (loss) attributable to Yahoo! Inc.
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Earnings before tax (EBT)
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Depreciation
Add: Amortization of intangible assets
Earnings before interest, tax, depreciation and amortization (EBITDA)

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).


Net income (loss) attributable to Yahoo! Inc.
The net income demonstrates significant volatility over the five-year period. Starting with a strong profit of approximately $3.95 billion in 2012, it sharply decreased to around $1.37 billion in 2013. The figure then sharply increased to approximately $7.52 billion in 2014, representing the highest net income within the timeframe. However, subsequent years show a marked deterioration, with a loss of about $4.36 billion in 2015 and a reduced loss of $214 million in 2016, indicating a partial recovery but still remaining in negative territory.
Earnings before tax (EBT)
The earnings before tax mirror the fluctuations seen in net income. From $5.89 billion in 2012, EBT significantly declined to $1.53 billion in 2013, followed by a substantial increase to $11.57 billion in 2014. The following years illustrate a sharp decline into losses again, with approximately $4.44 billion loss in 2015, and a smaller loss of $336 thousand in 2016 suggesting an improving trend though not yet returning to profitability.
Earnings before interest and tax (EBIT)
The EBIT figures closely follow the pattern of EBT and net income. It started at $5.90 billion in 2012, diminished to $1.54 billion in 2013, then peaked at $11.64 billion in 2014. Post-2014, the EBIT fell into negative territory with losses of around $4.37 billion in 2015 and $262 thousand in 2016, indicating operational challenges during these last two years while showing signs of partial recovery by 2016.
Earnings before interest, tax, depreciation and amortization (EBITDA)
The EBITDA trend is consistent with prior metrics but reflects somewhat less volatility in losses in the later period due to the inclusion of depreciation and amortization costs. It began at $6.55 billion in 2012 and declined significantly to $2.17 billion in 2013, followed by a peak of $12.25 billion in 2014. The figure turned negative in 2015 with a loss of about $3.76 billion, but unlike EBIT and EBT, it rebounds to a positive $246 thousand in 2016. This suggests improved cash generating ability despite ongoing profitability issues in other areas.

Enterprise Value to EBITDA Ratio, Current

Yahoo! Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV)
Earnings before interest, tax, depreciation and amortization (EBITDA)
Valuation Ratio
EV/EBITDA
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
Fair Isaac Corp.
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.

Based on: 10-K (reporting date: 2016-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Yahoo! Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1
Earnings before interest, tax, depreciation and amortization (EBITDA)2
Valuation Ratio
EV/EBITDA3
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
Fair Isaac Corp.
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.

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).

1 See details »

2 See details »

3 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =

4 Click competitor name to see calculations.


The financial data reveals a fluctuating trend in both enterprise value and EBITDA over the reporting periods, accompanied by significant variability in the EV/EBITDA ratio.

Enterprise Value (EV)
The enterprise value shows a general upward trajectory with some volatility. Beginning at approximately 20.1 billion US dollars in 2012, EV nearly doubled to 36.8 billion in 2013, before slightly declining to 34.7 billion in 2014. A marked decrease occurred in 2015, with EV falling to about 25.5 billion, followed by a substantial rebound to nearly 38.8 billion in 2016.
Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA)
EBITDA exhibits considerable fluctuations over the observed periods. In 2012, EBITDA was strong at around 6.55 billion US dollars but sharply declined to 2.17 billion in 2013. The figure rebounded significantly in 2014, reaching approximately 12.2 billion, the highest in the series. However, EBITDA turned negative in 2015, registering a loss of roughly 3.76 billion, and, despite recovering to a positive value in 2016, remained low at about 246 million.
EV/EBITDA Ratio
The EV/EBITDA ratio reflects the volatility in EBITDA and EV. The ratio started at 3.06 in 2012, surged to 16.95 in 2013 due to declining EBITDA, then dropped back to a low of 2.84 in 2014 during EBITDA's peak. The ratio could not be calculated for 2015, as EBITDA was negative. In 2016, the ratio spiked dramatically to 157.81, driven by a combination of high enterprise value and very low positive EBITDA.

Overall, the financial metrics indicate periods of significant operational and valuation instability. The large variations in EBITDA and the consequent impact on the EV/EBITDA multiple suggest challenges in maintaining consistent profitability, while fluctuations in enterprise value may reflect changes in market perception, asset valuation, or capital structure adjustments over the years.