Yahoo! Inc. (NASDAQ:YHOO)

Price to Earnings (P/E) Ratio

The P/E ratio exhibited notable volatility during the observed periods. It increased sharply from 6.12 at the end of 2012 to 28.57 in 2013, indicating a significant rise in the market's valuation relative to earnings. However, by the end of 2014, it had decreased substantially to 5.51. Data for subsequent years is unavailable, preventing further trend analysis beyond 2014.

Price to Operating Profit (P/OP) Ratio

This ratio showed an increasing trend over the three recorded periods, rising dramatically from 42.66 in 2012 to 66.17 in 2013, and further soaring to 289.99 in 2014. Such a steep increase suggests that the company's market price significantly outpaced its operating profit growth, potentially indicating market optimism or deteriorating operating profitability. Subsequent years lack data for continuation of the trend.

Price to Sales (P/S) Ratio

The P/S ratio demonstrated variability across all five years. It rose from 4.85 in 2012 to 8.34 in 2013 and slightly increased further to 8.98 in 2014. A decrease to 6.06 was observed in 2015, followed by an increase to 8.56 in 2016. The fluctuations suggest changing investor perceptions of sales growth or profitability relative to sales, with no clear linear trend.

Price to Book Value (P/BV) Ratio

The P/BV ratio increased significantly from 1.66 in 2012 to 2.99 in 2013, indicating higher market valuation relative to the book value. Thereafter, it dropped sharply to 1.07 in 2014 and slightly decreased to 1.04 in 2015. In 2016, it rebounded moderately to 1.42. These variations suggest fluctuating investor confidence in the company's net asset value or changes in the underlying book value itself.

The financial data demonstrates varied trends in the company's market valuation and profitability over the five-year period ending in 2016.

Share Price

The share price exhibited a general upward trajectory from 2012 to 2014, starting at $21.94 and reaching $44.28 in 2014. This was followed by a decline to $31.79 in 2015, after which the share price rebounded to $46.24 in 2016. Overall, the share price showed volatility but ended higher than it began.

Earnings Per Share (EPS)

The EPS fluctuated notably across the period. It began at $3.58 in 2012, dropped significantly to $1.35 in 2013, then sharply increased to $8.03 in 2014. However, the company experienced negative earnings in the subsequent years, with EPS falling to -$4.60 in 2015 and slightly improving to -$0.22 in 2016. This indicates a period of profitability downturn and losses in the latter years analyzed.

Price-to-Earnings (P/E) Ratio

The P/E ratio showed substantial variability, starting at a relatively low 6.12 in 2012, then spiking to 28.57 in 2013, which may reflect a high market valuation relative to earnings during that year. It decreased again to 5.51 in 2014. Notably, P/E data is missing for 2015 and 2016, likely due to the negative earnings in those years, as P/E ratios are generally not computed with negative earnings.

In summary, the company's stock price generally increased with episodes of volatility. Earnings per share displayed considerable instability, culminating in losses during the final years. Correspondingly, valuation multiples as represented by the P/E ratio fluctuated markedly and were absent in the periods of negative profitability, suggesting a challenging financial performance in the later years under review.

The financial data reveals several notable trends over the five-year period ending December 31, 2016.

Share Price Movement

The share price demonstrated a general upward trend over the period. It increased significantly from $21.94 at the end of 2012 to $38.67 in 2013, and further to $44.28 in 2014. There was a notable decline in 2015 to $31.79, followed by a strong rebound in 2016 where the share price reached its highest point of $46.24. This pattern suggests some volatility but an overall appreciation in market valuation over the five years.

Operating Profit per Share

The operating profit per share exhibited a divergent trend compared to the share price. It experienced a slight increase from $0.51 in 2012 to $0.58 in 2013; however, it sharply declined to $0.15 in 2014. In 2015, the measure moved into negative territory at -$5.02 and, while improving somewhat in 2016, it remained negative at -$0.67. This indicates a significant deterioration in operational profitability, particularly from 2014 onwards.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio, calculated as share price divided by operating profit per share, increased substantially. Starting at 42.66 in 2012, it rose to 66.17 in 2013 and then surged dramatically to 289.99 in 2014. Due to negative operating profits after 2014, the P/OP ratio is not reported for 2015 and 2016, which is consistent with standard practice since the ratio is undefined or not meaningful when profits are negative. The sharp increase through 2014 reflects escalating market expectations despite weakening profitability.

In summary, while the share price showed resilience and growth overall, the operating profitability of the company significantly declined during the same timeframe, especially post-2013. The rising P/OP ratio up to 2014 indicates market optimism or higher valuation multiples despite declining operating profit, which may warrant further examination regarding the sustainability of such valuations given the negative operating profits in subsequent years.

Share Price Trend

The share price experienced significant volatility over the five-year period. It increased notably from $21.94 in 2012 to a peak of $44.28 in 2014, representing a substantial appreciation. However, in 2015, the share price declined sharply to $31.79 before recovering to $46.24 in 2016, reaching its highest level in the observed timeframe.

Sales per Share Trend

Sales per share showed a consistent upward trend throughout the period. Starting at $4.53 in 2012, sales per share steadily increased each year, reaching $5.40 in 2016. This indicates steady revenue growth on a per-share basis without any noticeable decline or volatility.

Price-to-Sales (P/S) Ratio Trend

The P/S ratio exhibited fluctuations that partially mirrored share price movements but with some divergence. It rose significantly from 4.85 in 2012 to a peak of 8.98 in 2014. Following this peak, the ratio dropped to 6.06 in 2015, coinciding with the share price decline. In 2016, the P/S ratio increased again to 8.56, close to the earlier peak levels, suggesting improved market valuation relative to sales despite the stabilization of sales growth.

Overall Financial Insights

The data reflects a company with increasing sales efficiency per share, supported by growing sales figures. The share price and P/S ratio volatility suggests external market factors or investor sentiment influencing valuation more than underlying sales performance. The sharp increase in valuation ratios until 2014, followed by a correction and a subsequent rebound, indicates phases of optimism and caution in market perception.

Share Price

The share price exhibited a general upward trend from 2012 to 2016, increasing from $21.94 in 2012 to $46.24 in 2016. Notably, after a significant rise between 2012 and 2014, reaching a peak of $44.28, the share price declined in 2015 to $31.79 before recovering strongly in 2016.

Book Value per Share (BVPS)

The book value per share showed considerable volatility across the period. It remained relatively stable between 2012 and 2013, with values around $13.22 and $12.95, respectively. A sharp increase occurred in 2014, where BVPS rose dramatically to $41.39, but declined over the following two years to $30.68 in 2015 and $32.46 in 2016.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio experienced fluctuations reflecting changes in share price relative to book value. It started at 1.66 in 2012, climbed sharply to 2.99 in 2013, then declined significantly to near parity at 1.07 in 2014 and 1.04 in 2015. In 2016, the ratio increased again to 1.42, indicating a moderate premium on the book value.

Summary of Trends and Insights

The share price increases between 2012 and 2014 were accompanied by a rise in the P/BV ratio, suggesting market optimism and potential valuation expansion. The sharp spike in BVPS in 2014 significantly reduced the P/BV ratio despite the elevated share price, which might indicate asset revaluation, acquisition effects, or changes in equity structure. The subsequent decline in share price in 2015 alongside a reduced BVPS led to a stable P/BV ratio near 1.0, indicating the market price closely matched the book value. The recovery in 2016 shows improving market confidence relative to the book value, though not to previous peak levels. Overall, the data suggest a period of volatility with notable structural changes in book value, while market valuation relative to book value adjusted accordingly over the observed years.