Name: Yahoo! Inc. (NASDAQ:YHOO) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Yahoo! Inc., current enterprise value calculation

Current share price (P)	$49.49
No. shares of common stock outstanding	958,198,997
US$ in thousands
Common equity (market value)¹	47,421,268)
Add: Preferred stock, $0.001 par value; none issued or outstanding (per books)	—)
Add: Noncontrolling interests (per books)	34,793)
Total equity	47,456,061)
Add: Convertible notes (per books)	1,299,945)
Add: Net lease obligations (per books)	23,000)
Total equity and debt	48,779,006)
Less: Cash and cash equivalents	1,119,469)
Less: Short-term marketable securities	5,700,925)
Enterprise value (EV)	41,958,612)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 49.49 × 958,198,997

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Yahoo! Inc., EV calculation

	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012
Share price^1, 2	$46.24	$31.79	$44.28	$38.67	$21.94
No. shares of common stock outstanding¹	956,487,217	946,811,547	936,120,954	1,009,392,339	1,101,295,389
US$ in thousands
Common equity (market value)³	44,227,969)	30,099,139)	41,451,436)	39,033,202)	24,162,421)
Add: Preferred stock, $0.001 par value; none issued or outstanding (book value)	—)	—)	—)	—)	—)
Add: Noncontrolling interests (book value)	34,793)	35,883)	43,755)	55,688)	45,403)
Total equity	44,262,762)	30,135,022)	41,495,191)	39,088,890)	24,207,824)
Add: Convertible notes (book value)	1,299,945)	1,233,485)	1,170,423)	1,110,585)	—)
Add: Net lease obligations (book value)	23,000)	33,000)	47,000)	44,000)	37,000)
Total equity and debt	45,585,707)	31,401,507)	42,712,614)	40,243,475)	24,244,824)
Less: Cash and cash equivalents	1,119,469)	1,631,911)	2,667,916)	2,077,590)	2,667,778)
Less: Short-term marketable securities	5,700,925)	4,225,112)	5,327,412)	1,330,304)	1,516,175)
Enterprise value (EV)	38,765,313)	25,544,484)	34,717,286)	36,835,581)	20,060,871)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Yahoo! Inc. Annual Report.

³ 2016 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 46.24 × 956,487,217

The financial trajectory between 2012 and 2016 is characterized by significant volatility in valuation metrics, with an overall growth trend interrupted by a notable contraction in 2015.

Market Valuation and Equity Trends: The market value of common equity exhibited substantial growth from 2012 to 2014, rising from approximately 24.16 billion US$ to 41.45 billion US$. A sharp decline occurred in 2015, with the value dropping to 30.10 billion US$, followed by a recovery to a five-year peak of 44.23 billion US$ by the end of 2016. Total equity closely mirrored these movements, maintaining a valuation nearly identical to the market value of common equity throughout the period.
Enterprise Value (EV) Dynamics: Enterprise value followed a pattern consistent with market equity, increasing sharply from 20.06 billion US$ in 2012 to 36.84 billion US$ in 2013. A subsequent downward trend led to a low of 25.54 billion US$ in 2015, before rebounding to 38.77 billion US$ in 2016. A recurring observation is that the enterprise value remained consistently lower than the market value of common equity in every reported year.
Capital Structure and Debt Levels: The margin between total equity and total equity and debt remained minimal across the analysis period, suggesting a capital structure with low leverage. For instance, in 2016, total equity and debt stood at 45.59 billion US$ compared to total equity of 44.26 billion US$, indicating that debt obligations represented a small fraction of the total capital.
Net Cash Position Analysis: The consistent gap where enterprise value is lower than the market capitalization of equity indicates a substantial net cash position. Because enterprise value is calculated as market capitalization plus debt minus cash, the fact that EV remained below market equity suggests that cash and cash equivalents significantly exceeded total debt throughout the 2012–2016 timeframe.

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Yahoo! Inc. (NASDAQ:YHOO)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)