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>> The stock is trading right now at 200 3/4. Its earnings are .10. <<

No, they're not. They're closer to 26 cents after removing aquisition charges. Not much, but a hell of a lot more than 10 cents.

>> Its five year earnings forecast according to the Fool is 55.88%<<

Yahoo!'s 5 year estimateed growth rate was also 55% 2-3 years ago, and since then it has been growing at 200%, tripling every year.

In fact, you'll find that just about every super growth company has an estimated growth rate of 45-55%, even if growth is likely to be in the triple digits.

>> In one year: .1 * 1.7 = .17 (and so forth)<<

Wait a minute. First you use the analyst 55% growth rate, and then you ignore analyst estimates 1 year out of not 17 cents, but 38 cents You're picking and choosing which analyst estimates you want to follow to support your argument. And, of course, Yahoo! has a history of crushing estimates.

Let's use your 70% growth estimates on Yahoo!'s earnings of 26 cents.


and we get a PE in 5 years of 54, about the same as Cisco. I'm not saying that Yahoo! is overvalued, I'm just recommending you use accurate numbers.
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