James Gellert, Chief Executive Officer at Rapid Ratings gave us some insights on Bloomberg about the businesses’ valuation. According to his company’s rating scheme Alibaba Group Holding Limited (BABA) had 71 points out of 100, Facebook Inc (NASDAQ:FB) got 70, Yahoo! Inc. (NASDAQ:YHOO) was granted 45 and Amazon.com, Inc. (NASDAQ:AMZN) was given a mere 41. About 90% of the companies that defaulted had a value of 40 and lower prior to the event, according to the same scale.
The math behind the points allocated remains a mystery, but he have to trust Gellert’s company on that.
“So we look at income statements and balance sheets for every company, we rate about 30,000 global companies now, public and private. We look at over 60 financial ratios that really dig deep into the efficiencies within the company,” said James Gellert.
Alibaba Group Holding Limited (BABA) exhibits excellent numbers and might get much better if it manages to emerge on the global market. Yahoo! Inc. (NASDAQ:YHOO) owns much of its points to the former company, it’s a well-known fact, but the latter’s price can go even higher thanks to the Chinese e-commerce talent.
“We like Yahoo, we actually own a little Yahoo! here and we think it’s got some upside left as we think people are underestimating just how well this IPO is going to go on Friday,” stated Mark Yusko, chief executive officer at Morgan Creek Capital.
Thanks to Alibaba Group Holding Limited (BABA)’s influence again, Amazon.com, Inc. (NASDAQ:AMZN) experiences tough times and lost more than 15% of its value year to date, but still it has more chances than the Sunnyvale, California-based tech gnome, by current standards. Mark Yusko confirms this as he added that Yahoo! Inc. (NASDAQ:YHOO)’s assets don’t appear to be managed effectively. So we can say that this company is worthless as practically nobody believes it will be able to perform a turnaround of events, but it’s stock price will be going higher because Alibaba Group Holding Limited (BABA) might reach prices up to $100 a share.
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