Estimate the stock price for yahoo

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Reference no: EM131169015

This exam requires you, among other things, to estimate the stock price for Yahoo! (Ticker: YHOO), and provide the analysis as requested. You will need to use "Sources of Financial Data" listed in Course Content to obtain the necessary financial info/statements for Yahoo!, to identify its peer companies and to obtain pricing and financial information for them.

A. Choose several peer companies for Yahoo! and justify your choice. Choose several valuation multiples and using comparable ratios of peer companies (as we did in Project 2 and discussed in Conferences) and Yahoo! financial information from prospectus, estimate the company's equity value on July 22, 2016. It is required for this question to list your major assumptions and properly reference sources of information that you used in your calculations..

B. Using the same peers and industry data, estimate Yahoo! WACC. Show all your data used for calculations. Again, please state all your assumptions and sources of information.

C. On July 25, 2016 Verizon (Ticker: VZ) announced its intent to buy Yahoo! How do your valuations compare to the Verizon's announced acquisition price? If your valuations differ from observed prices, can you briefly forward any possible explanations? For example, you should discuss and attempt to evaluate possible synergy and other effects of acquisition.

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Reference no: EM131169015

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