Yahoo! Inc. (YHOO): Time to Buy This Giant on Positive News?

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Company P/E PEG 1-Y return
Yahoo 17x 1.49x 41%
Google 14x 1.3x 29%
Microsoft 8.7x 1.7x -11.35%
Facebook 34x 1.7x -25%

Bottom-line

The market has positively responded to recent management and vision changes at Yahoo. This is why the stock has given an impressive return of 41% in the last one year. The stock is currently trading at a P/E of 17x and 10% below its mean sell side target price of $22. I am optimistic about the recent changes at Yahoo and believe the company is setting itself up to create long term shareholder value. Despite this positive outlook, I believe the stock is trading pretty close to real value and therefore I recommend investors to ‘Hold’ Yahoo for the time being.

The article Time to Buy This Giant on Positive News? originally appeared on Fool.com and is written by Mohsin Saeed.

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