Yahoo own 40% of Alibaba, this deal valued Yahoo’s Alibaba stock on $12.8B. Yahoo has $2.6B in cash. Yahoo’s Market Capital is $17.66B
So it has only $17.66B-$12.8B-$2.6B = 2.26B premium. It is about $1.87 per share. I means investor pays only $1.87 per share to own all yahoo’s business. So the price of Yahoo is super cheap and attractive now. This $1.87 makes yahoo’s P/E ratio at only 2, this is a super low PE.