Yahoo! Inc., FCFF calculation

US$ in thousands

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.	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)
Net income attributable to noncontrolling interests	4,858)	7,975)	10,411)	10,285)	5,123)
Net noncash charges	1,036,975)	5,412,718)	(9,820,496)	21,627)	(5,079,123)
Changes in assets and liabilities, net of effects of acquisitions	421,351)	(3,445,033)	3,185,054)	(202,946)	846,967)
Net cash provided by (used in) operating activities	1,248,863)	(2,383,422)	896,700)	1,195,247)	(281,554)
Interest paid, net of tax¹	—)	—)	—)	—)	—)
Acquisition of property and equipment	(239,109)	(554,163)	(389,551)	(342,971)	(505,507)
Proceeds from sales of property and equipment	249,787)	11,176)	17,404)	4,840)	—)
Proceeds from sales of patents	1,500)	29,100)	86,300)	79,950)	—)
Purchases of intangible assets	(2,045)	(4,811)	(2,658)	(2,500)	(3,799)
Free cash flow to the firm (FCFF)	1,258,996)	(2,902,120)	608,195)	934,566)	(790,860)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Yahoo! Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Yahoo! Inc. FCFF decreased from 2014 to 2015 but then increased from 2015 to 2016 exceeding 2014 level.

Yahoo! Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Earnings before tax (EBT)
Net income (loss) attributable to Yahoo! Inc.	(214,321)	(4,359,082)	7,521,731)	1,366,281)	3,945,479)
Add: Net income attributable to noncontrolling interest	4,858)	7,975)	10,411)	10,285)	5,123)
Add: Income tax expense	(126,228)	(89,598)	4,038,102)	153,392)	1,940,043)
EBT	(335,691)	(4,440,705)	11,570,244)	1,529,958)	5,890,645)
Effective Income Tax Rate (EITR)
EITR¹	37.60%	2.02%	34.90%	10.03%	32.93%
Interest Paid, Net of Tax
Interest paid, before tax	—)	—)	—)	—)	—)
Less: Interest paid, tax²	—)	—)	—)	—)	—)
Interest paid, net of tax	—)	—)	—)	—)	—)

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 2016 Calculation
EITR = 100 × Income tax expense ÷ EBT
= 100 × -126,228 ÷ -335,691 = 37.60%

² 2016 Calculation
Interest paid, tax = Interest paid × EITR
= 0 × 37.60% = 0

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	41,958,614)
Free cash flow to the firm (FCFF)	1,258,996)
Valuation Ratio
EV/FCFF	33.33
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	21.01
Adobe Inc.	29.65
International Business Machines Corp.	15.20
Intuit Inc.	34.81
Microsoft Corp.	52.20
Oracle Corp.	35.39
Palo Alto Networks Inc.	33.70
Salesforce Inc.	27.21
ServiceNow Inc.	54.22
Synopsys Inc.	52.10

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

¹ Click competitor name to see calculations.

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

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

	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	38,765,313)	25,544,484)	34,717,286)	36,835,581)	20,060,871)
Free cash flow to the firm (FCFF)²	1,258,996)	(2,902,120)	608,195)	934,566)	(790,860)
Valuation Ratio
EV/FCFF³	30.79	—	57.08	39.41	—
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	—	—	—	—	—
Adobe Inc.	—	—	—	—	—
International Business Machines Corp.	—	—	—	—	—
Intuit Inc.	—	—	—	—	—
Microsoft Corp.	—	—	—	—	—
Oracle Corp.	—	—	—	—	—
Palo Alto Networks Inc.	—	—	—	—	—
Salesforce Inc.	—	—	—	—	—
ServiceNow Inc.	—	—	—	—	—
Synopsys 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/FCFF = EV ÷ FCFF
= 38,765,313 ÷ 1,258,996 = 30.79

⁴ Click competitor name to see calculations.

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Yahoo! Inc. (NASDAQ:YHOO)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical