Alibaba could be worth $95B post-IPO, thinks Reuters' John Foley after doing some quick math -...
Apr 28 2013, 10:57 ET
Alibaba could be worth $95B post-IPO, thinks Reuters' John Foley after doing some quick math - that would give Yahoo (YHOO - $27.4B market cap) a $22.8B stake. Foley's assumptions: the Chinese e-commerce market grows 35%/year for the next 2 years (less than 2012's growth); Alibaba keeps an 80% transaction share and 30% op. margin, while roughly doubling its take rate to 5% (still well below eBay's); and (like Tencent) it's valued at 25x forward EPS. One big caveat: Foley assumes Alibaba, which depends on ad sales, will either start charging merchants or raise ad prices via targeted ads. Oppenheimer has valued Alibaba at $77B. (The Economist)