Yahoo! also owns 35% of Yahoo! Japan. One would think Yahoo! Japan is entirely owned and operated by Yahoo!, but that's not the case. The excellent news is the 35% is worth about $9 billion.
There is considerable debate over the Yahoo! Japan valuation, especially between Yahoo! and Yahoo! Japan. If we discount the net valuation expected valuation to Yahoo! shareholders, we can add $6 billion more.
Adding Alibaba and Yahoo! Japan holdings brings us up to at least $31 billion. Add $2 billion in excess cash, and Yahoo!'s $39 billion market cap begins to appear closer to $6 billion -- or less.
When viewed from that angle, the forward estimated earnings multiple shifts from 21 toward 3.3, making Yahoo!'s stock remarkably cheap. Yahoo!'s board is also convinced the shares are trading at an extremely attractive price and continues to authorize massive share buybacks.Follow @RobertWeinstein This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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