Baruch Lev comments on the price Verizon paid for Yahoo!

“That means Verizon is paying around five times free cash flow, based on the $4.8 billion price,” says Baruch Lev, distinguished professor of accounting at New York University’s Stern School of Business. “That isn’t a high number. But I’m also assuming that almost all the cash flows excluding the dividends are going to Verizon. If that’s not the case, the multiple could be excessive.”

Read the original article published on Fortune (July, 2016) here. Please comment below to talk to the author, express your views or add to above topic. 


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