Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Yahoo! Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
- Price to Earnings (P/E) Ratio
-
The P/E ratio displayed notable volatility from the first quarter of 2013 through March 2015. Initially, it remained relatively low and stable, between approximately 5.5 and 7, before sharply increasing to a peak value of 136.91 in the third quarter of 2015. This peak suggests an extraordinary event such as unusually high earnings or a significant drop in earnings during that specific period. After this spike, data for subsequent periods is unavailable, preventing further trend analysis beyond 2015.
- Price to Operating Profit (P/OP) Ratio
-
The P/OP ratio showed a general upward trend from the first quarter of 2013 to March 2015. Starting at 48.42, it increased substantially to a very high 1620.27 by early 2015, indicating a rising price relative to operating profit. This steep increase implies that the stock price outpaced operating profit growth, or that operating profits decreased sharply over this period. After early 2015, no further data is available for this metric.
- Price to Sales (P/S) Ratio
-
The P/S ratio exhibited a gradual increase over the entire timeframe from early 2013 through the first quarter of 2017. Beginning around 5.75, it rose steadily with minor fluctuations, reaching 8.77 by March 2017. This consistent growth suggests increasing market valuation relative to sales revenue. The absence of significant volatility implies relatively stable sales growth or a consistent increase in investor valuation multiples.
- Price to Book Value (P/BV) Ratio
-
The P/BV ratio showed a declining trend from 2.0 in early 2013 to just above 1.0 by late 2015, indicating a reduced market valuation relative to the book value of assets. After late 2015, the ratio fluctuated moderately between 1.0 and about 1.4 up to March 2017. This stabilization at lower levels compared to early 2013 suggests a more conservative valuation by the market or changes in the company's underlying book value.
Price to Earnings (P/E)
Yahoo! Inc., historical P/E calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 958,198,997 | 956,487,217 | 954,124,482 | 951,782,587 | 949,068,569 | 946,811,547 | 944,355,144 | 941,390,842 | 938,442,668 | 936,120,954 | 947,351,485 | 994,603,788 | 1,006,808,134 | 1,009,392,339 | 1,014,442,318 | 1,020,321,185 | 1,082,634,754 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (loss) attributable to Yahoo! Inc. (in thousands) | 99,434) | 161,998) | 162,826) | (439,913) | (99,232) | (4,434,987) | 76,261) | (21,554) | 21,198) | 166,344) | 6,774,102) | 269,707) | 311,578) | 348,190) | 296,656) | 331,150) | 390,285) | ||||||
| Earnings per share (EPS)2 | -0.02 | -0.22 | -5.04 | -5.15 | -4.72 | -4.60 | 0.26 | 7.37 | 7.71 | 8.03 | 8.13 | 1.23 | 1.28 | 1.35 | 1.27 | 4.07 | 3.74 | ||||||
| Share price1, 3 | 49.49 | 46.24 | 41.21 | 39.24 | 37.44 | 31.79 | 35.12 | 36.67 | 43.87 | 44.28 | 48.55 | 35.66 | 33.92 | 38.67 | 34.07 | 27.48 | 26.07 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | — | — | — | — | — | — | 136.91 | 4.97 | 5.69 | 5.51 | 5.97 | 28.93 | 26.52 | 28.57 | 26.78 | 6.75 | 6.97 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
EPS
= (Net income (loss) attributable to Yahoo! Inc.Q1 2017
+ Net income (loss) attributable to Yahoo! Inc.Q4 2016
+ Net income (loss) attributable to Yahoo! Inc.Q3 2016
+ Net income (loss) attributable to Yahoo! Inc.Q2 2016)
÷ No. shares of common stock outstanding
= (99,434,000 + 161,998,000 + 162,826,000 + -439,913,000)
÷ 958,198,997 = -0.02
3 Closing price as at the filing date of Yahoo! Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/E ratio = Share price ÷ EPS
= 49.49 ÷ -0.02 = —
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited notable fluctuations over the observed periods. Initially, there was a gradual increase from $26.07 to $38.67 between March 2013 and December 2013. This was followed by a decline and subsequent variability through 2014 and 2015, dipping to around $31.79 by December 2015. Beginning in early 2016, the share price showed a consistent upward trajectory, rising from $37.44 to $49.49 by March 2017, marking a significant recovery and growth phase.
- Earnings Per Share (EPS) Trends
- EPS presented considerable volatility and a downward shift during the span reported. Initially, EPS values were moderate with a peak of 8.13 in September 2014; however, from late 2014 onwards, EPS began to decline sharply, with some quarters reflecting negative earnings, for instance, -4.6 in December 2015 and continuing negative values into 2016. By early 2017, EPS neared break-even levels, indicating some stabilization following the losses experienced.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio demonstrated significant variability. Early periods showed moderate levels near 7, with transient spikes to above 26 between September 2013 and June 2014. Subsequently, the ratio declined to values around 5.5 in late 2014 and early 2015, and then surged dramatically to 136.91 by September 2015, coinciding with a substantial drop in earnings. After this peak, P/E data are not provided, likely due to negative or negligible earnings, which render the ratio less meaningful.
- Overall Insights
- The financial data reflect a company navigating through considerable earnings volatility, impacting valuation metrics like the P/E ratio. Despite the fluctuations and periods of negative earnings, the persistent recovery in share price towards the end of the period suggests market optimism or potential underlying strengths not captured solely by EPS figures. Stakeholders should consider the earnings challenges in conjunction with the share price recovery when evaluating company performance.
Price to Operating Profit (P/OP)
Yahoo! Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 958,198,997 | 956,487,217 | 954,124,482 | 951,782,587 | 949,068,569 | 946,811,547 | 944,355,144 | 941,390,842 | 938,442,668 | 936,120,954 | 947,351,485 | 994,603,788 | 1,006,808,134 | 1,009,392,339 | 1,014,442,318 | 1,020,321,185 | 1,082,634,754 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Income (loss) from operations (in thousands) | (58,747) | 64,151) | (52,319) | (489,676) | (167,214) | (4,530,034) | (86,312) | (44,794) | (87,354) | 32,154) | 42,172) | 38,437) | 30,179) | 174,218) | 92,759) | 136,979) | 185,970) | ||||||
| Operating profit per share2 | -0.56 | -0.67 | -5.49 | -5.54 | -5.09 | -5.02 | -0.20 | -0.06 | 0.03 | 0.15 | 0.30 | 0.34 | 0.43 | 0.58 | 0.60 | 0.65 | 0.54 | ||||||
| Share price1, 3 | 49.49 | 46.24 | 41.21 | 39.24 | 37.44 | 31.79 | 35.12 | 36.67 | 43.87 | 44.28 | 48.55 | 35.66 | 33.92 | 38.67 | 34.07 | 27.48 | 26.07 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | — | — | — | — | — | — | — | — | 1,620.27 | 289.99 | 161.38 | 105.69 | 78.66 | 66.17 | 57.06 | 42.15 | 48.42 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
Operating profit per share
= (Income (loss) from operationsQ1 2017
+ Income (loss) from operationsQ4 2016
+ Income (loss) from operationsQ3 2016
+ Income (loss) from operationsQ2 2016)
÷ No. shares of common stock outstanding
= (-58,747,000 + 64,151,000 + -52,319,000 + -489,676,000)
÷ 958,198,997 = -0.56
3 Closing price as at the filing date of Yahoo! Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 49.49 ÷ -0.56 = —
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited overall growth from March 2013 to March 2017, increasing from $26.07 to $49.49. There was an initial upward trend during 2013, with a notable rise to $38.67 by December 2013. The price fluctuated between $33.92 and $48.55 through 2014, peaking in September 2014. During 2015, the share price declined steadily from $43.87 in March to $31.79 in December. Starting in 2016, the share price showed a recovery, increasing from $37.44 to $46.24 by December 2016 and reaching $49.49 in the first quarter of 2017.
- Operating Profit Per Share (OPPS)
- The operating profit per share showed a declining trend over the reported periods. It started at $0.54 in the first quarter of 2013, peaking briefly at $0.65 in the second quarter of 2013. After some volatility, there was a steady decrease through 2014, falling to $0.15 by year-end. The decline intensified in 2015, with values turning negative from the second quarter onward, reaching a low of -$5.02 in the fourth quarter. Negative operating profits persisted throughout 2016, although the loss narrowed substantially toward the end of the year, with values of -$0.67 and -$0.56 recorded in the last quarter of 2016 and first quarter of 2017 respectively.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio displayed extreme volatility and sharp increases from 2013 to 2014. It rose from 48.42 in the first quarter of 2013 to a peak of 289.99 by the end of 2014, indicating the market price substantially outpaced the operating profits per share. In early 2015, the ratio reached 1620.27, reflecting the severe decline and negative values in operating profit that made the ratio unreliable or undefined in subsequent periods. No P/OP figures are reported beyond this point, likely due to negative operating profits affecting the computability of the ratio.
- Insights
- The data reveals a challenging period for operating profitability, especially during 2015 and 2016, which corresponded to significant losses on a per-share basis. Despite the downturn in operating profitability, the share price demonstrated resilience and a tendency to recover, particularly in late 2016 and early 2017. The decoupling of share price from operating profit during the period of losses suggests that other factors may have influenced investor sentiment and valuation. The sharp escalation and subsequent disappearance of the P/OP ratio further underscore the impact of negative earnings on traditional valuation metrics.
Price to Sales (P/S)
Yahoo! Inc., historical P/S calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 958,198,997 | 956,487,217 | 954,124,482 | 951,782,587 | 949,068,569 | 946,811,547 | 944,355,144 | 941,390,842 | 938,442,668 | 936,120,954 | 947,351,485 | 994,603,788 | 1,006,808,134 | 1,009,392,339 | 1,014,442,318 | 1,020,321,185 | 1,082,634,754 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Revenue (in thousands) | 1,327,270) | 1,469,140) | 1,305,206) | 1,307,637) | 1,087,152) | 1,273,393) | 1,225,673) | 1,243,265) | 1,225,970) | 1,253,072) | 1,148,140) | 1,084,191) | 1,132,730) | 1,265,795) | 1,138,973) | 1,135,244) | 1,140,368) | ||||||
| Sales per share2 | 5.65 | 5.40 | 5.21 | 5.14 | 5.09 | 5.25 | 5.24 | 5.17 | 5.02 | 4.93 | 4.89 | 4.65 | 4.64 | 4.64 | 4.69 | 4.73 | 4.53 | ||||||
| Share price1, 3 | 49.49 | 46.24 | 41.21 | 39.24 | 37.44 | 31.79 | 35.12 | 36.67 | 43.87 | 44.28 | 48.55 | 35.66 | 33.92 | 38.67 | 34.07 | 27.48 | 26.07 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | 8.77 | 8.56 | 7.91 | 7.63 | 7.36 | 6.06 | 6.70 | 7.09 | 8.74 | 8.98 | 9.93 | 7.67 | 7.31 | 8.34 | 7.26 | 5.81 | 5.75 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
Sales per share
= (RevenueQ1 2017
+ RevenueQ4 2016
+ RevenueQ3 2016
+ RevenueQ2 2016)
÷ No. shares of common stock outstanding
= (1,327,270,000 + 1,469,140,000 + 1,305,206,000 + 1,307,637,000)
÷ 958,198,997 = 5.65
3 Closing price as at the filing date of Yahoo! Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/S ratio = Share price ÷ Sales per share
= 49.49 ÷ 5.65 = 8.77
5 Click competitor name to see calculations.
- Share price trend
- The share price demonstrated an overall upward trajectory from March 2013 to March 2017, starting at $26.07 and rising to $49.49. Notable fluctuations occurred, with a significant peak near the end of 2013 at $38.67, followed by a decline in 2015 where the price dropped to around $31.79 by December 2015. Recovery and growth resumed afterwards, culminating in a steady increase through 2016 and early 2017.
- Sales per share trend
- Sales per share exhibited consistent, moderate growth throughout the period. Beginning at $4.53 in March 2013, it increased almost steadily to reach $5.65 by March 2017. This gradual rise indicates steady revenue generation per share without marked volatility.
- Price-to-Sales (P/S) ratio trend
- The P/S ratio showed marked variability. Initially, it rose sharply from 5.75 in March 2013 to a peak of 9.93 in September 2014. This increase suggests investor optimism and relatively high valuation compared to sales during that time. Following this peak, the ratio declined to a low of 6.06 in December 2015, indicating a period of valuation correction. Subsequently, the ratio increased again, reaching 8.77 by March 2017, reflecting renewed investor confidence or expectations of future sales growth.
- Overall financial insights
- The combination of steadily increasing sales per share and fluctuating but increasing share prices suggests sustained revenue growth alongside varying market sentiment. The fluctuations in the P/S ratio imply periods of changing investor valuation relative to sales, with peaks possibly corresponding to market optimism or anticipated growth prospects. The recovery in share price and P/S ratio after 2015 aligns with the gradual improvement in fundamental sales performance, signaling improved market confidence in the company’s financial outlook.
Price to Book Value (P/BV)
Yahoo! Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 958,198,997 | 956,487,217 | 954,124,482 | 951,782,587 | 949,068,569 | 946,811,547 | 944,355,144 | 941,390,842 | 938,442,668 | 936,120,954 | 947,351,485 | 994,603,788 | 1,006,808,134 | 1,009,392,339 | 1,014,442,318 | 1,020,321,185 | 1,082,634,754 | ||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Total Yahoo! Inc. stockholders’ equity (in thousands) | 35,435,717) | 31,049,283) | 34,836,272) | 28,363,894) | 28,478,347) | 29,043,537) | 28,245,950) | 33,532,602) | 33,658,896) | 38,741,837) | 36,713,567) | 12,691,988) | 12,905,183) | 13,074,909) | 12,494,111) | 13,808,864) | 14,139,916) | ||||||
| Book value per share (BVPS)2 | 36.98 | 32.46 | 36.51 | 29.80 | 30.01 | 30.68 | 29.91 | 35.62 | 35.87 | 41.39 | 38.75 | 12.76 | 12.82 | 12.95 | 12.32 | 13.53 | 13.06 | ||||||
| Share price1, 3 | 49.49 | 46.24 | 41.21 | 39.24 | 37.44 | 31.79 | 35.12 | 36.67 | 43.87 | 44.28 | 48.55 | 35.66 | 33.92 | 38.67 | 34.07 | 27.48 | 26.07 | ||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | 1.34 | 1.42 | 1.13 | 1.32 | 1.25 | 1.04 | 1.17 | 1.03 | 1.22 | 1.07 | 1.25 | 2.79 | 2.65 | 2.99 | 2.77 | 2.03 | 2.00 | ||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2017 Calculation
BVPS = Total Yahoo! Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 35,435,717,000 ÷ 958,198,997 = 36.98
3 Closing price as at the filing date of Yahoo! Inc. Quarterly or Annual Report.
4 Q1 2017 Calculation
P/BV ratio = Share price ÷ BVPS
= 49.49 ÷ 36.98 = 1.34
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a general upward trend over the analyzed period. It started at $26.07 in the first quarter of 2013, peaking at $48.55 in the third quarter of 2014, followed by some fluctuations. A decline was observed towards the end of 2015, reaching a low of $31.79. From early 2016 onwards, the price recovered consistently, reaching $49.49 by the first quarter of 2017, marking the highest value in the dataset.
- Book Value per Share (BVPS) Trend
- BVPS showed moderate volatility during the period. Initially, the value hovered around $12-$13 per share until mid-2014. A significant increase occurred in the third quarter of 2014, where BVPS jumped to $38.75 and continued to rise to $41.39 by year-end 2014. Subsequently, BVPS declined steadily through 2015 and early 2016, hitting approximately $29.80. The metric experienced some recovery later in 2016 and into early 2017, ending at $36.98.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio initially ranged between 2.00 and 2.99, indicating that the share price was significantly higher relative to book value through 2013 and early 2014. A notable decline in the P/BV ratio occurred in the latter half of 2014, dropping to values near or below 1.25, which suggests the market valuation aligned more closely with or was below the book value during this phase. Throughout 2015 and 2016, the ratio remained relatively stable within a narrow band of approximately 1.03 to 1.42. By the first quarter of 2017, the P/BV ratio stood at 1.34, reflecting a moderate premium over book value compared to the earlier years.
- Overall Insights
- The data reveals a period of strong market optimism and increased valuation in 2013 through mid-2014, as evidenced by rising share prices and elevated P/BV ratios. The spike in book value per share in late 2014 coincides with a pronounced drop in the P/BV ratio, indicating a significant revaluation or change in book value components. The subsequent decline in share price and BVPS through 2015 suggests a phase of correction or restructuring. Recovery trends in both share price and BVPS from 2016 forward demonstrate renewed investor confidence and improved underlying company value, albeit with a more tempered market valuation relative to historic highs.